Access Bank Plc’s planned acquisition of South Africa’s Bidvest Bank has been terminated, with sources indicating that regulatory approval delays in Nigeria were the key stumbling block.
Although Access Bank reportedly completed the purchase, the deal was contingent on receiving clearance from the Central Bank of Nigeria (CBN) — a requirement stipulated in the transaction agreement. This regulatory approval was necessary despite the fact that the transaction was not domiciled in Nigeria, as the CBN remains the primary regulator for the Nigerian banking group and its holding company.
Regulatory Orthodoxy Stalls Deal
Insiders told THISDAY that CBN Governor Olayemi Cardoso’s strict adherence to regulatory processes was a decisive factor in the deal’s collapse. According to sources, Cardoso was not motivated by commercial interests but by the need for full compliance with regulatory procedures, describing the governor as “a stickler for process.”
Because the required approval was not issued, the transaction could not progress. The deal was eventually terminated after Access Bank failed to satisfy certain contractual conditions by the agreed stop date.
It remains uncertain whether the transaction could be revived should the CBN eventually grant clearance. Sources say the delay, rather than a rejection, was the central issue.
Broader Implications for Nigeria–South Africa Relations
The proposed acquisition was viewed as more than a commercial expansion. It was widely seen as a signal of renewed cooperation between Nigeria and South Africa—two economies that have experienced strained diplomatic ties in recent years. As such, the collapse of the deal could be interpreted as a diplomatically sensitive setback.
However, it is important to note that the failure of the transaction was not due to any issues with South African regulators, nor was it a reflection of unwillingness from either party to proceed. Rather, the impediment was purely regulatory on the Nigerian side.
Bidvest’s Strategic Shift Remains Unchanged
The Bidvest Group confirmed that the sale and purchase agreement included standard conditions precedent, including regulatory approvals. Despite months of engagement between the parties to secure the necessary clearances, the deal ultimately fell through.
Bidvest also reiterated that the strategic rationale for restructuring its financial services arm and selling Bidvest Bank remains unchanged. The collapse of the transaction therefore brings to an end a deal that had been expected to significantly bolster Access Bank’s presence in the South African market.