Equity Bank has announced that it has officially completed its acquisition of Banque Commerciale Du Congo DCDC at a cost of Ksh10.2billion.
The deal that was announced last year 2019 November has seen Kenya’s Equity Bank acquire 66.53% stake in the DR Congo’s oldest Bank, BCDC, which was established in 1909.
James Mwangi, the Group Managing Director and CEO of Equity Group Holdings Plc stated in a statement
“We have been fortunate to have had the opportunity to acquire two of the most solid banks in the market. With the second and fourth largest banks in the country being our subsidiaries, we are confident that amalgamation and merger of the two subsidiaries will produce a combined bank with a balance sheet in excess of Sh 216 billion with the capacity and capability to contribute significantly to the development and transformation of the Democratic Republic of Congo.”
Earlier in 2015 Equity Bank acquired a 79% stake in ProCredit, a German bank, and re-branded the bank to Equity Bank Congo 3 years later in 2018. ProCredit Bank was 7th Largest Bank in DR Congo.
BCDC is expected to be incorporated into Equity Bank Congo merging them into a single bank. According to Dr James Mwnagi, a merger of the two entities (BCDC and Equity Bank Congo formerly PorCredit Bank) will produce a subsidiary which will contribute more than 20% of the Group’s total balance sheet.
“We are glad that we now have the size and countrywide infrastructure that can bring our experience and capability to contribute significantly to the transformation of lives and livelihoods in DRC, while stimulating economic transformation of the country through resource allocation,” said Dr. Mwangi. He added, “The addition of and amalgamation with BCDC will put Equity Group Holdings Plc on the path to become a Kshs 1 trillion balance sheet business, that will benefit from economies of scale.
Up to 96 per cent of the citizens are unbanked in the vast and resource rich DRC with a population of over 85 million population.