- South Africans are pessimistic about Access Bank’s full acquisition of Bidvest Bank
- Some doubt the deal’s profitability, while others are planning to boycott the bank following the acquisition
- Access Bank said the acquisition is part of its plans to be Africa’s gateway to the global market
South Africans have taken to social media, particularly X, to express pessimism following the news of Access Bank’s 100 per cent acquisition of Bidvest Bank Limited.
Access Holdings Plc announced that its banking subsidiary, Access Bank Plc, signed a binding agreement with Bidvest Group Limited for the acquisition of a 100 per cent equity stake in Bidvest Bank Limited.
According to the bank, the acquisition is expected to close in the second half of 2025, subject to regulatory approvals.
The company said the acquisition is a reflection of the bank’s commitment to maintaining its footprint in South Africa, as well as its goal of being the gateway to connecting Africa to the global market,
“This agreement reflects the bank’s commitment to strengthening its footprint in South Africa and consolidating its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies,” the bank said.
On the profitability of Bidvest Bank, the statement noted that it has carved a niche for itself, providing a range of services that include corporate and business banking solutions and diverse retail banking products.
The bank said, “As of its financial year ended June 2024, Bidvest Bank reported total assets equivalent to USD665.0 million and audited profit before tax of USD20.0 million.
“The acquisition is expected to close in the second half of 2025, subject to regulatory approvals. Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.”
Comments on Bidvest Bank acquisition
In his comments, the Managing Director/CEO of Access Bank Plc, Roosevelt Ogbonna, said the acquisition, like others, is part of the bank’s goal of connecting Africa to the world while ensuring value and growth.
Ogbonna said, “This acquisition supports our ambition to expand across Africa and solidify our presence in key markets, with South Africa being a top priority.
“It underscores our commitment to establishing a more resilient, diversified, and sustainable business model that leverages technology to meet evolving customer needs.
“Bidvest Bank provides a unique opportunity to blend its strong local expertise with Access Bank’s robust trade and retail banking capabilities, creating a platform for long-term growth and value creation.”
The Chief Executive of The Bidvest Group, Mpumi Madisa, noted that the acquisition will ensure the growth of the bank, leveraging Access Bank’s reach and advancement.
Madisa said, “As a well-respected, experienced, and prominent financial services entity, I am pleased that Access Bank meets our objectives and provides reassurance for the continued sustainability and prosperity of the bank.
“It will enable the bank to advance, scale, and sustainably grow in today’s fast-changing, technology-driven, and highly competitive sector.”
South Africans are pessimistic about the acquisition
Despite the optimism and hopes of both Access Bank and The Bidvest Group about the acquisition, some South Africans think it is a bad deal.
In their comments on the news of the acquisition, these South Africans say the acquisition would not make any difference as Bidvest Bank hasn’t been the bank to beat in South Africa.
Going by the age-long rivalry and bad blood between Nigerians and South Africans, some others said they would boycott the bank since it has been acquired by a Nigerian company.
@SelloSamuel14 said, “Acquiring Bidvest Bank is a BAD investment.”
@itsjustprib wrote, “Reason why the bidvest wits team was sold. They were running on a loss in recent years probably since 2019 🤌 Just hope they find their feet with Access. Only God knows what Access analyst has analysed to save it from crash.”
@Unahinanaye tweeted, “Bidvest Bank isn’t one of the top five banks in the country, so it’s worth taking another look at all the excitement around this big acquisition. It’s probably not going to change the overall picture of financial institutions in the country much.”
@afroghanga said, “We as South Africans will simply not bank there.”
@SLephera9174 tweeted, “Bidvest just made things worse for themselves, no one can associate with them since now Nigeria is involved.”
@ADS_ZAR wrote, “Cyril has shares at Bidvest so South Africans know now why he wanted Nigerians to come to SA with no passports, it makes sense now. That was probably part of the deal.”
Access Bank fully acquires Standard Chartered’s Angola, Sierra Leone subsidiaries
Meanwhile, TheRadar reported that Access Bank, the main subsidiary of Access Holdings Plc, completed the acquisition of Standard Chartered Bank Angola S.A. and Standard Chartered Bank (Sierra Leone) Limited.
The announcement of the acquisition was published on the Nigerian Exchange (NGX) disclosure page and signed by the company secretary, Sunday Ekwochi, on Wednesday, November 27.
