Nedbank Tables Offer to Acquire Majority Stake in NCBA Group

A South African Bank, Nedbank Group Limited has issued a proposal to acquire a majority stake in NCBA Group PLC, a leading financial services provider in East Africa.

In a statement dated January 21, 2026, NCBA said it had received a strategic investment proposal and a Notice of Intention from Nedbank to acquire approximately 66 per cent of its ordinary shares through a tender offer to existing shareholders.

“NCBA Group PLC (NCBA or the Group), a preeminent financial services provider in East Africa, has announced that it has received a Strategic Investment Proposal together with a Notice of Intention (NOI) from Nedbank Group Limited (Nedbank) to acquire approximately 66 per cent of the ordinary shares of NCBA from NCBA shareholders by way of a Tender Offer,” read part of the notice.

The Proposed Deal Involving Nedbank’s Acquisition of a Majority Stake

The proposed transaction, valued at 1.4 times NCBA’s book value, would see NCBA become a subsidiary of Nedbank while maintaining its listing on the Nairobi Securities Exchange (NSE).

Under the terms of the Tender Offer, participating NCBA shareholders will receive 20 per cent of their consideration in cash, with the remaining 80 per cent settled through the issuance of Nedbank ordinary shares listed on the Johannesburg Stock Exchange (JSE). While Nedbank will hold the controlling interest, 34 per cent of NCBA’s shares will remain listed on the NSE.

Reason for Acquisition

According to NCBA, the acquisition aligns with Nedbank’s strategy to expand its footprint into the high-growth markets of East Africa. Nedbank CEO Jason Quinn identified the region as a “key growth region,” citing Kenya’s role as a regional financial hub with advanced markets and a dynamic technology sector.

Currently, Nedbank only maintains a representative office in East Africa; therefore, the acquisition will not require immediate in-country integration of systems or operations. Instead, NCBA will serve as the main investment tool for Nedbank’s regional ambitions, which include Kenya, Rwanda, Tanzania, and Uganda.

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On its part, NCBA Group stated it brings significant market leadership to the partnership, serving over 60 million customers and disbursing more than KES 1 trillion in digital loans annually.

John Gachora, NCBA Group Managing Director, noted that Nedbank’s strong balance sheet will enable the group to scale further and explore potential investment opportunities in the Democratic Republic of Congo (DRC) and Ethiopia. Together, these markets represent a combined population of approximately 246 million people.

Benefits of the Merger

Preservation of Brand: Nedbank intends to keep NCBA’s existing brand, governance structures, and management team intact.
Capacity Building: NCBA staff will gain access to global training and career opportunities, while customers will benefit from Nedbank’s deep lending capacity and sectoral expertise.
Market Strength: Nedbank holds a top-tier position in South Africa, particularly in vehicle and commercial property finance, where it maintains a 36 per cent market share in each category.

Also Read: Stanbic Holdings in Talks to Acquire NCBA Group

Further, NCBA stated that the transaction remains subject to regulatory approvals from central banks across the relevant jurisdictions. If cleared, the deal is expected to close within six to nine months.

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