{"id":2560,"date":"2019-12-10T06:06:41","date_gmt":"2019-12-10T06:06:41","guid":{"rendered":"https:\/\/candrgroup.co.ke\/?p=2560"},"modified":"2024-02-08T20:53:41","modified_gmt":"2024-02-08T20:53:41","slug":"ncba-nic-cba-merger-kcb-national-bank-buyout-and-mampas-in-kenya","status":"publish","type":"post","link":"https:\/\/candrgroup.co.ke\/2019\/12\/10\/ncba-nic-cba-merger-kcb-national-bank-buyout-and-mampas-in-kenya\/","title":{"rendered":"NCBA \u2013 NIC CBA MERGER, KCB-NATIONAL BANK BUYOUT AND M&AS IN KENYA"},"content":{"rendered":"\n
NCBA \u2013 NIC CBA MERGER, KCB-NATIONAL BANK BUYOUT AND M&AS IN KENYA<\/strong><\/p>\n\n\n\n CBA and NIC Banks have now merged into NCBA Group PLC and have merged their operations, creating East Africa\u2019s third largest bank. This move further progresses the trend of firms merging to enable quick growth, economies of scale among other benefits.<\/p>\n\n\n\n Kenya Commercial Bank\u2019s (KCB) takeover of National Bank of Kenya also happened in tandem and created a lot of excitement of potential transactions for 2019 in regards to Mergers and Acquisitions (M&As). KCB\u2019s 100 percent takeover of its competitor creates the region\u2019s biggest bank by assets due to the amount of deposits both entities have on their books.<\/p>\n\n\n\n NBK\u2019s acquisition was informed by the need to inject much capital into an institution that ran into financial and management headwinds a few years ago. For everyone associated with NBK i.e. customers, employees and shareholders, KCB\u2019s takeover will steady a struggling behemoth which was eyeing a bailout from the Kenyan Government.<\/p>\n\n\n\n For NBK customers, they will rest easy in the knowledge that their funds will now be backed up by a solid digital infrastructure, an innovative product portfolio and good customer service. Shareholders will sleep easy in the knowledge that their investments will be absorbed by a company with a record of strong financial performance.<\/p>\n\n\n\n From KCB\u2019s perspective, this acquisition is a golden opportunity to extend its already bulky customer base and explore new markets. By acquiring NBK\u2019s assets, KCB don\u2019t have to worry about high costs associated with market penetration.<\/p>\n\n\n