The KCB Group has officially applied to the regional competition watchdog to get a green-light to purchase two banks in Tanzania and Rwanda, which will cost them Sh4.4 billion ($40 million).
As stated in a notice dated last week Monday, the Comesa Competition Commission said that it had begun collecting views from interested parties, including competitors, suppliers, and customers, over the two deals.
“The Commission will determine among other things whether or not the merger is likely to substantially prevent or lessen competition within the Common Market and whether the merger is or would be contrary to the public interest,” said the watchdog.
In November 2020, KCB announced its aspirations to obtain a 62.06 percent stake in Banque Populaire Du Rwanda (BPR) and a 100 percent stake in African Banking Corporation Tanzania Limited (BancABC).
KCB Group, which already has a presence in both countries, signed a share purchase agreement with London-based Atlas Mara Limited and gave itself a six-month timeline to seal the deal.
The $ 40million transaction, which KCB intends to settle in cash, will have $32 million to be used to purchase BPR and $8 million on BancABC.
The final book value of the two banks after the transactions will be the basis of the actual cash transactions to be paid by the KCB group.