NIC Bank, Commercial Bank of Africa in merger talks

NIC Bank and Commercial Bank of Africa trading as CBA have finally announced that they are holding talks for a merger.

In a joint statement sent to newsroom late Thursday, the two lenders indicated that they had begun preliminary talks for a potential merger.

“It is the view of the two boards that a potential merger would bring the best of the two entities in class retail and corporate banks,” reads the statement signed by NIC Chairman James Ndegwa and his CBA counterpart Destario Oyatsi.

In January 2015, the first telltale signs of a potential marriage between the tier two financial institutions emerged. They however denied and termed the information as rumours.

The banks now say that if successful, the merger would create a combined group that would play a significant role in Kenya’s financial services sector.

“It is important to note that an eventual merger is subject to due diligence process, shareholders, regulatory and other approvals,” the statement added.

Listed at the Nairobi Securities Exchange, NIC has issued a cautionary statement as required by the regulator in respect to trading of its shares.