KCB Group has ended interest in acquiring a commercial bank in Tanzania from London-listed financial services firm, Atlas Mara Limited, after the time set for getting regulatory nods lapsed.
Kenya’s largest lender by market share said “certain regulatory approvals” had not been granted within the timeframe set for buyout of African Banking Corporation Tanzania Limited (BancABC).
KCB entered into a share purchase agreement with Atlas Mara-controlled African Banking Corporation Holdings (ABCH) on November 26, 2020 to buy a 97.3 per cent stake in BancABC Tanzania initially for an estimated $8 million (Sh900.5 million).
The deal was subject to shareholders’ and regulatory approvals upon fulfilment of customary conditions.
“Without further agreement by the parties to extend the long stop date, the agreement has been terminated and, accordingly, the parties will not proceed to complete the transaction as previously envisaged,” KCB Group chief executive and managing director Joshua Oigara said in a statement on Thursday.
The deal for BancABC Tanzania was signed on the same day as that for acquisition of Atlas Mara’s 62.06 per cent stake in Populaire Du Rwanda (BPR) initially for $32 million (Sh12.6 billion).