Access Bank Plc’s proposed acquisition of South Africa’s Bidvest Bank has collapsed following regulatory hurdles, Vanguard has learnt.
Although the Nigerian lender had reached an agreement to acquire the South African bank, completion of the transaction was subject to regulatory approvals, including clearance from the Central Bank of Nigeria (CBN), in line with the terms of the deal.
Despite the transaction not being domiciled in Nigeria, approval from the CBN was required given its role as the primary regulator of Access Bank’s banking group and holding company structure.
Sources familiar with the matter said the regulatory stance of the CBN under its Governor, Mr. Olayemi Cardoso, required strict adherence to due process, with no exemptions granted on commercial grounds.
“Cardoso is very orthodox in his approach. He insists on process and full compliance with both the form and substance of regulation, regardless of the commercial interests involved,” a source said.
In the absence of the required regulatory approval within the agreed timeline, the transaction was unable to progress and was subsequently terminated after Access Bank failed to meet certain contractual conditions by the stipulated stop date.
It remains unclear whether the deal could be revived should the CBN eventually grant the necessary approval.
Beyond its commercial significance, the proposed acquisition was seen as having broader implications for Nigeria–South Africa economic relations, especially against the backdrop of previously strained ties between both countries.
Market watchers had viewed the deal as a positive signal of renewed confidence and cooperation between the two economies. Its collapse, therefore, may be regarded as diplomatically sensitive.
However, sources stressed that the failure of the transaction was not due to any regulatory issues on the South African side, nor a lack of willingness by either party to proceed, but was solely the result of regulatory constraints on the Nigerian end.
Confirming the development, the Bidvest Group said the sale and purchase agreement contained customary conditions precedent, largely centred on regulatory approvals.
According to the group, both parties engaged extensively over several months to secure the necessary clearances, but were ultimately unable to conclude the transaction.
Bidvest added that its strategic rationale for reorganising its financial services division and divesting Bidvest Bank remains unchanged, bringing to an end a deal that was expected to significantly boost Access Bank’s footprint in the South African market.
