KCB Group have completed the acquisition of DRC-based lender Trust Merchant Bank SA (TMB) after all the regulatory approvals.
“KCB Group has obtained the regulatory green light in Kenya, the Democratic Republic of Congo and COMESA Competition Commission, setting the stage for the Group to acquire the 85% of the shares in TMB,” said the statement on twitter issued on Wednesday evening.
According to KCB, the acquisition will enable it accelerate its market presence in Democratic Republic of Congo in the near term by leveraging on TMB's 18 year operating history, vast branch network, customer relationship and deep knowledge of local business dynamics.
This comes after KCB Group shareholders had approved a proposal on acquisition in August.
KCB will acquire 85 per cent of the shares in TMB while the existing shareholders will continue to hold the balance for a period of not less than two years after which KCB will have the right to acquire their shares.
The acquisition is part of KCB's ongoing strategy to expand its regional presence. DRC is the newest member of the East African Community.
TMB, a public company limited by shares, is one of DRC's largest banks, with US$1.5 billion in total assets. TMB has a strong offering in retail, SME, Corporate and digital banking channels.
It has 109 branches and numerous agency banking outlets spread across DRC.
The completion of TMB acquisition, will complement KCB Group's footprint with an asset base of Sh1.5 trillion (US$ 12.6 billion) and is expected to strengthen the Group's retail and corporate banking franchises.
