South African lender’s East African expansion clears key hurdle as shareholders accept takeover offer
Nedbank has crossed the finish line of its East African expansion, securing a controlling 66% stake in NCBA Group after shareholders tendered shares representing 79.9% of the Kenyan banking group.
The offer, which closed July 10, attracted acceptances covering 1.316 billion NCBA shares. The South African lender will acquire 1.087 billion shares — the 66% target; for approximately $855.5 million, paid in 20% cash and 80% Nedbank shares.
“We have achieved our targeted 66% shareholding in NCBA,” Nedbank said in a regulatory notice.
NCBA will retain its brand, local management, and Nairobi listing, with public investors holding the remaining 34%. Nedbank plans no integration of NCBA’s Kenyan operations, currently operating only a representative office in the country.
Regulatory approvals secured include Kenya’s Capital Markets Authority, the South African Reserve Bank, and multiple competition authorities across the region. Remaining approvals are expected by late Q3 2026, with completion targeted for early Q4.
NCBA, Kenya’s third-largest bank by customer base and branch network, was formed through the 2019 merger of NIC Group and Commercial Bank of Africa.
It also operates in Uganda, Tanzania, Rwanda, and offers digital banking in Ghana and Côte d’Ivoire.
The acquisition follows Nedbank’s August 2025 decision to sell its 21.22% stake in pan-African banking group Ecobank to focus on Southern and East African markets.
