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StanChart to sell sub-Saharan Africa business to Access Bank
Global Banking & Finance Review®
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DUBAI (Reuters) – Standard Chartered said on Friday it has reached an agreement to sell its subsidiaries in sub-Saharan Africa to Nigeria’s Access Bank, putting into motion a plan announced last year to divest those
DUBAI (Reuters) – Standard Chartered said on Friday it has reached an agreement to sell its subsidiaries in sub-Saharan Africa to Nigeria’s Access Bank, putting into motion a plan announced last year to divest those businesses.
Standard Chartered will sell its shareholding in its subsidiaries in Angola, Cameroon, Gambia and Sierra Leone to Access. It will also sell its consumer, private & business banking business in Tanzania to Access Bank, a subsidiary of Access Holdings.
Standard Chartered said in April last year that it would exit seven countries in Africa and the Middle East (AME) as it seeks to improve profits by focusing on faster-growing markets in the region.
“Access Bank will provide a full range of banking services and continuity for key stakeholders including employees and clients of Standard Chartered’s businesses across the five aforementioned countries,” Standard Chartered said in a statement.
The agreement is in line with Standard Chartered’s global strategy “aimed at achieving operational efficiencies, reducing complexity, and driving scale,” it said.
A value for the deal, which is expected to be completed in the next year, was not disclosed. The deals are subject to regulatory approvals in each of the countries as well as in Nigeria.
“This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential,” Sunil Kaushal, Standard Chartered’s regional CEO for AME, said in the statement.
The statement said the deal would help Access “build a strong global franchise focused on serving as a gateway for payments, investment, and trade within Africa and between Africa and the rest of the world”.
“With our recent European expansion and our deepened presence in key trading corridors across Africa, we will bridge the gap between cross-border and domestic transfers across all business segments,” Access Group Managing Director Roosevelt Ogbonna said in the statement.
(Reporting by Yousef Saba; editing by Jason Neely)
Divestment refers to the process of selling off a subsidiary or business unit. Companies may choose to divest to focus on core operations or improve financial performance.
A subsidiary is a company that is controlled by another company, known as the parent company. The parent company typically owns more than 50% of the subsidiary's shares.
Consumer banking, also known as retail banking, refers to the services provided to individual customers, including savings accounts, loans, and credit cards.
Private banking is a service offered by banks to high-net-worth individuals, providing personalized financial and investment services tailored to their needs.
Operational efficiency refers to the ability of an organization to deliver products or services in the most cost-effective manner without compromising quality.
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