Access Bank Acquires Diamond Bank
Access Bank Plc has finally acquired Diamond Bank Plc. According to insiders, the official announcement of the transaction will be made in the course of the week by the Central Bank of Nigeria, CBN. Another source confirmed that the deal has been sealed, awaiting final ratification from the regulatory body. The acquisition was midwifed by the CBN in a bid to further consolidate the banking industry. Last week, Diamond Bank announced its decision to drop its international operating licence to focus on national operations following capitalization issues.
Uzoma Dozie, the bank’s Chief Executive Officer, confirmed the development in a statement released on Friday. Dozie had said: “With this approval, the bank will cease to operate as an international bank. “The re-licensing as a national bank supports Diamond Bank’s objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market, and the economy. The move follows Diamond Bank’s decision to sell its international operations, which included the disposal of its West African Subsidiary in 2017 and Diamond Bank UK, the sale of which is currently in its final stages.”
“The change to national bank status also enables the bank to maintain a lower minimum capital requirement of 10 per cent, as against 15 per cent required for international banks.” The bank recorded its worst month on record in November with share plunging to 0.61k per unit on November 30, 2018. Related Obi left money before leaving, former Diamond Bank Chairman reveals May 19, 2017 Access, Diamond Bank deny alleged merger & acquisition talks November 12, 2018 Diamond Bank Deploys PFSâ€™Clirec Software for Reconciliation Diamond Bank has commenced the implementation of Clirec, its accounts reconciliation solution which comes from the stable of Precise Financial Systems (PFS), a software provider. Clirec enables companies to reap the rewards of a more efficient operation.
Mixed reactions trail Diamond Bank merger with Access Bank
Diamond Bank Plc shareholders on Monday 17th December, expressed mixed reactions to its merger with Access Bank Plc. The much touted rumour of bank merger between Access Bank and Diamond Bank, was finally out to rest as the board of Diamond Bank confirmed its acquisition with Access Bank Plc, which is expected to be completed in first half of 2019.
Both banks recently denied media reports of any business merger or combination. While we wait for more details of the merger, Nigerians as usual took to twitter, though some customers are surprised, displeased, some are indifferent, and some are seeking to understand the impact and implications of the acquisition of Diamond Bank by Access Bank, on their savings and funds in either of the banks custody.