Recently, KCB Group Plc announced the acquisition of Trust Merchant Bank SA (TMB) after receiving all the regulatory approvals.
The group now owns an 85 per cent stake in the Democratic Republic of Congo (DRC) based lender. KCB Group obtained the regulatory green light in Kenya, the Democratic Republic of Congo and COMESA Competition Commission.
In a statement, KCB Group CEO Paul Russo said the transaction will positively contribute towards KCB’s increased scale of operations by establishing its presence in new markets and providing income diversification from a geographical perspective.
Further, the transaction will enable KCB to accelerate its market presence in the DRC in the near term by leveraging on TMB’s 18-year operational history, vast branch network, valuable local customer relationships and deep knowledge of local business dynamics.
In addition to the core banking business of TMB, the existence of an insurance subsidiary Afrissur SA will provide an opportunity for KCB to diversify its offerings in DRC’s insurance sector. This transaction will provide KCB a strategic foundation to capitalize on cross-border trade from the Indian to the Atlantic Ocean.
Through KCB’s expertise and experience, the statement noted, this presents a good opportunity for KCB to provide to the existing customers of TMB and new customers to be acquired as a result of the transaction, enhanced banking products that is expected to grow and embed KCB’s brand in the DRC market and beyond.
“We have found a partner with a proven and trusted history of serving and supporting customers, businesses, and communities. Combining our common legacies and our complementary footprints will strengthen our ability to serve our communities and regional customers and provide solutions that make a difference in people’s lives,” said Russo.
Source: The Observer