[2008-04-08]  CFC-Stanbic merger concluded
Stanbic Bank has received the final regulatory approval which will complete its merger with CfC Bank limited.

The approval came from the South African Reserve Bank (SARB), the regulator of Standard Banking Group that owns Stanbic Bank Kenya.

According to Mr Mike du Toit, Stanbic Bank’s managing director, the merger announced yesterday now paves the way for the banks, to effectively enter into a working arrangement.

New company

“We now have an opportunity to demonstrate our commitment and accelerate our steps in concluding the merger,” he said.

In the deal, Standard Bank Group will merge its existing Kenyan operation alongside CfC bank and its holding companies.

Upon completion of the deal, the group will own 164 million ordinary shares. This an equivalent of 60 per cent ownership of the CfC Stanbic Holdings Limited- the new company to be formed.

It will ensure Stanbic Bank Kenya becomes a wholly owned subsidiary of CfC Bank, the listed entity.

The new entity will be the first fully integrated financial service provider and the fourth largest bank by asset value in Kenya, with a combined asset base of Sh76.1 billion.

The transaction had earlier received approval from the Kenyan market regulator Capital Markets Authority in October last year.

Clean bill of health

In September, Finance minister Amos Kimunya gazetted the deal giving it a bill of health. The merger talks have been on going for almost one year.

The Sh19 billion deal has been been described as the largest in the country’s history.

The approval also came at a time when CfC group reported a decline in overall profitability .

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