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KCB Group has made a formal application to the regional competition watchdog to be cleared for the Sh4.4 billion ($40 million) deal in which it is seeking to acquire two banks in Tanzania and Rwanda.

 

Comesa Competition Commission said in a notice dated last week Monday that it had started collecting views from interested parties including competitors, suppliers and customers over the two deals.

 

“The Commission will determine among other things whether or not the merger is likely to substantially prevent or lessen competition within the Common Market and whether the merger is or would be contrary to the public interest,” said the watchdog.

KCB in late November last year announced that it would acquire 62.06 percent stake in Banque Populaire Du Rwanda (BPR) and 100 percent stake in African Banking Corporation Tanzania Limited (BancABC).

 

The lender, which already has presence in the two markets, signed a share purchase agreement with London-based Atlas Mara Limited and gave itself a six-month timeline to complete the deal.

 

The transaction will be settled in cash with $32 million being incurred on BPR and $8 million on BancABC.

 

The actual cash consideration payable by KCB will, however, be determined based on the final book value of the two banks at completion of the transactions.

 

Business Daily Africa