By Obinna Uballa
Access Bank Plc’s planned takeover of South Africa’s Bidvest Bank has fallen through due to regulatory delays, sources have confirmed.
The Nigerian lender had completed the initial acquisition but was required to secure approval from the Central Bank of Nigeria (CBN), its primary regulator, before the deal could be finalised. Without the clearance, the transaction could not proceed, and it was ultimately terminated after certain contractual conditions were not met by the agreed deadline.
ThisDay Newspaper reported, quoting sources that CBN Governor Olayemi Cardoso’s insistence on strict regulatory compliance, rather than commercial considerations, was central to the collapse.
“He is a stickler for process,” a source said, explaining that all procedural requirements had to be followed meticulously.
Observers say the failed acquisition carries implications beyond the commercial aspect, as it was viewed as a potential boost for Nigeria-South Africa economic relations. Analysts say the collapse could be seen as diplomatically sensitive, though the failure was unrelated to South African regulators or the willingness of either party to proceed.
Bidvest Group had previously confirmed that the sale and purchase agreement included standard conditions precedent, primarily related to regulatory approvals. Both parties engaged for months to obtain the necessary clearances, but the deal could not move forward.
Despite the collapse, Bidvest maintains that its strategic rationale for reorganising its financial services division and divesting Bidvest Bank remains intact, while Access Bank’s plans to expand its presence in South Africa are now on hold.
