Nedbank Proposes Takeover of NCBA in East Africa Expansion Push

AFRICAN BUSINESS AND ECONOMYJanuary 30, 2026 at 10:26 AM UTC

TLDR

Nedbank proposes to acquire about 66% of NCBA Group's share capital, valuing NCBA at 1.4 times book value.
Shareholders participating in the offer will receive a combination of cash (20%) and Nedbank ordinary shares (80%).
The acquisition aims to help Nedbank expand beyond Southern Africa, as NCBA operates across East and West African markets with strong digital banking and investment banking services.

NCBA Group said it has received a strategic investment proposal from Nedbank for the acquisition of about 66% of its share capital through a tender offer.

If completed, the transaction would see NCBA become a subsidiary of Nedbank, while the remaining 34% of shares would continue to trade on the Nairobi Securities Exchange. The offer values NCBA at about 1.4 times book value.

Shareholders who participate would receive mixed consideration, with 20% paid in cash and 80% settled in Nedbank ordinary shares listed on the Johannesburg Stock Exchange.

NCBA operates across several East and West African markets and serves more than 60 million customers through 122 branches. The group has built strong positions in digital banking, asset finance, and investment banking, and has reported an average return on equity of about 19% since 2021. It disburses more than KES 1 trillion in digital loans each year.

For Nedbank, the proposed acquisition supports its strategy to expand beyond Southern Africa. The lender currently has only a representative office in East Africa.

The transaction remains subject to regulatory approvals and is expected to close within 6 to 9 months.

Key Takeaways

Nedbank’s proposal highlights growing cross-border consolidation in African banking. Large South African lenders are seeking growth outside mature home markets, and East Africa stands out for its scale, digital adoption, and credit demand. NCBA offers an established platform. Its digital lending model, customer base, and regional footprint reduce the need for greenfield expansion. By keeping a minority free float on the Nairobi exchange, the structure preserves local market participation while giving Nedbank control. The valuation at 1.4 times book suggests confidence in NCBA’s profitability and growth, but also reflects the strategic premium attached to East African exposure. The share-and-cash mix limits Nedbank’s upfront cash use while tying NCBA shareholders to the combined group’s future performance. Regulatory approval will be the main hurdle. Multiple central banks will scrutinize competition, capital adequacy, and governance. If approved, the deal would rank among the largest banking transactions in the region and could trigger further consolidation as regional banks seek scale, capital, and digital capability to compete across borders.

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