Access Bank Bidvest deal fails as Nigerian regulatory hurdles prevent approval, ending plans to expand into South Africa

Access Bank Plc’s proposed acquisition of South Africa’s Bidvest Bank has collapsed due to regulatory constraints.

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The Nigerian lender had completed the purchase agreement but required clearance from the Central Bank of Nigeria (CBN) to finalise the transaction, despite the deal being domiciled outside Nigeria.

Sources said CBN Governor Olayemi Cardoso’s insistence on strict compliance with regulatory processes prevented approval, ultimately causing the deal to lapse after contractual conditions were unmet by the agreed stop date.

Insiders says Cardoso’s approach was strictly procedural rather than commercially driven, emphasising regulatory orthodoxy over expediency.

It remains uncertain whether the acquisition can be revived if CBN clearance is eventually issued.

The acquisition had been seen as a significant step in strengthening Nigeria-South Africa economic relations, signalling renewed confidence between the two markets.

The failure, therefore, carries potential diplomatic sensitivity, though the transaction’s collapse was not due to South African regulators or any reluctance on the part of the banks involved.

Bidvest Group confirmed that customary conditions precedent, particularly related to regulatory approvals, were embedded in the sale agreement.

The strategic rationale for restructuring its financial services division and selling Bidvest Bank remains unchanged, despite the termination of the transaction.

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The deal was expected to enhance Access Bank’s footprint in South Africa, but regulatory constraints on the Nigerian side have stalled these expansion plans.