Kenya’s Equity Bank is in the process of acquiring the Commercial Bank of Congo – the second-largest lender in the Democratic Republic of Congo (DRC).
The acquisition is likely informed by the rapid growth of its Equity Bank Congo subsidiary. According to the bank, Equity Bank Congo is the fastest growing subsidiary of Equity Group Holdings (EGH) contributing about 22 percent of the Group’s total assets.
The new acquisition, expected to be completed in 3 months time, will merge the new business with its existing subsidiary in DRC.
“The proposed transaction is an opportunity for EGH to deliver the vision of building sub-Saharan Africa’s premier financial institution through delivering innovative products and services to customers, including, in particular, the effective use of technology.”
Equity is also looking to enter new markets with such acquisitions. The bank is also looking to enter Ethiopia.
In as statement, Equity Holding Holdings Chairman, James Mwangi said:
“We’re going to be the largest bank in the Eastern and Central African region, with the possibility of expanding our balance sheet to beyond Kshs. 1 trillion ($10B) by the end of this year.”