Commercial Bank of Africa (CBA) and the National Industrial Credit Bank (NIC) have finally announced that they are holding talks for a merger.
In a joint statement that was released to the media late Thursday, the two lenders believe that combining the activities of two highly profitable entities would create increased capacity to seize strategic growth opportunities, through capital consolidation and strong liquidity.
“It is the view of the two boards that a potential merger would bring the best of the two entities in class retail and corporate banks,” reads a statement signed by CBA Chairman, Destario Oyatsi and his NIC counterpart James Ndegwa.
The two banks say that if successful, the merger would create a combined group that would play a significant role in Kenya’s financial services sector.
“It is important to note that an eventual merger is subject to due diligence process, shareholders, regulatory and other approvals,” the statement added.
Listed at the Nairobi Securities Exchange, NIC has issued a cautionary statement as required by the regulator in respect to trading of its shares.