On December 17, 2018, two of Nigeria’s leading banks, Access Bank and Diamond Bank, announced plans for a $200m merger to establish the country’s largest lender by total assets ($16.7bn). The transaction is one of the first mergers and acquisitions (M&A) in Nigeria’s banking sector to arise without the intervention of the central bank in more than 10 years. It will also go a long way to strengthening the country’s banking system.
The deal will see shareholders in Diamond Bank receive 3.31 naira per share, which will be comprised of 1 naira in cash for each share held and two new Access Bank shares for every seven Diamond Bank shares that are held. As such, Access Bank will acquire the entire issued share capital of Diamond Bank.
