FirstBank goes in search of value acquisitions, combs Sub-Saharan Africa
First Bank Nigeria (FBN) has said it is searching for acquisitions that will add value to its business. The statement was made by FBN Holdings Plc, the holding company for FirstBank and its former subsidiaries.
Declaring this recently in a regulatory filing at the Nigerian Stock Exchange (NSE), FBN Holdings stated that it was searching the Sub-Saharan Africa for acquisitions that would bring substantial growth to the group.
The statement was in response to the widespread report that the bank was concluding plans to acquire two of Nigeria’s commercial banks, which include Polaris Bank and Heritage Bank.
According to FirstBank, recent events in the banking industry had thrown up merger and acquisition opportunities for banks, but it would only consider any acquisition which has value for its esteemed shareholders and stakeholders.
However, the bank did not specifically confirm any move as widely reported, but rather noted that there would always be speculations on its involvement in mergers and acquisitions given its size, liquidity and systemic importance in the Nigerian banking sector.
Recall that the Central Bank of Nigeria (CBN) had in 2019 hinted that recapitalisation of commercial banks in the country had become necessary as their existing capital could no longer finance large transactions. Also in 2019, Access Bank Plc acquired Diamond Bank Plc positioning it as one Africa’s largest commercial banks.
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