Standard Chartered has signed agreements to divest the company’s shareholding in its subsidiaries to Access Bank.
The divestiture includes Standard Chartered’s subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone as well as its consumer, private and business banking (CPBB) business in Tanzania.
Through the sale of its business in sub-Saharan Africa with Access Bank, Standard Chartered aims to achieve operational efficiencies by reducing complexity and driving scale.
Listed on the London and Hong Kong stock exchanges, Standard Chartered is present in 57 dynamic markets.
Standard Chartered Africa and Middle East regional CEO Sunil Kaushal said: “This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential, ultimately enabling us to better support our clients.
“We look forward to working closely with Access Bank’s team over the coming months to achieve a successful conclusion to this transaction while safeguarding the interests of our valued clients and prioritising our employees.”
Access Bank aims to offer a full range of banking services and continuity for key stakeholders including employees and clients of Standard Chartered’s businesses across the five countries.
Both parties expect to collaborate in the coming months to ensure a seamless transition.
Through the transaction, Access Bank intends to build a global franchise focused on serving as a gateway for payments, investment, and trade within Africa and between Africa and the rest of the world.
Access Bank group managing director Roosevelt Ogbonna said: “We are pleased to sign this agreement today and express our appreciation for being selected as the preferred partner to Standard Chartered through this transaction, in which it is exiting four African markets and refocusing in one.
“As a distinguished regional and international bank with a rich heritage spanning over 150 years, Standard Chartered has built a solid presence in these markets for over 100 years.”
Each transaction is subject to the approval of the respective local regulators and the banking regulator in Nigeria.
The sale is anticipated to be completed over the next 12 months.