How regulatory issues hinder Bidvest Bank acquisition

Access Holdings Plc says the proposed acquisition of 100 per cent equity stake in South Africa-based Bidvest Bank by its subsidiary, Access Bank Plc, has not been completed following the expiration of the transaction’s long-stop date.The company disclosed this in a statement signed by its company Secretary, Sunday Ekwochi, on Tuesday.It noted that the long-stop date for the completion of the deal, which commenced on Dec. 12, 2024, expired on Jan. 26, without the fulfilment of all required conditions.According to the statement, some of the outstanding conditions included regulatory approvals necessary to finalise the multi-jurisdictional transaction.The statement reads “”Further to our announcement dated December 12, 2024, to Nigerian Exchange Ltd , Access Holdings PIc hereby announces that the long-stop date for the proposed acquisition of Bidvest Bank by the company’s banking subsidiary, Access Bank PIc has expired without completion.“The Bank had proposed to acquire 100 per cent of Bidvest Bank in a transaction that commenced on December 12, 2024.“The long-stop date by which all conditions required to complete the transaction expired on January 26, 2026, and certain conditions, including regulatory conditions were not fully met. The outcome reflects the complexities and extended timelines associated with multi-jurisdictional regulatory and transactional processes, rather than any change in the Bank’s strategic intent or assessment of the South African market.”Commenting on the development, the bank’s Managing Director, Mr Roosevelt Ogbonna said, “We remain constructively engaged with stakeholders on this transaction towards finding a potential path to closure. This initial outcome does not diminish our confidence in South Africa’s financial ecosystem. We remain focused on building Africa’s most respected financial institution, strengthening our trade finance capabilities and delivering long-term value to customers, partners and communities across all our markets”.