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Ecobank Nigeria, Oceanic Bank complete merger

News » Business

Image: Oceonic Bank and EcoBank Logo

Following the recent shareholders’ approval of the merger of Ecobank Nigeria Plc and Oceanic Bank International, the requisite legal and regulatory approvals have now been obtained and the full merger of the two institutions has  been concluded.

A statement by Ecobank on Monday said the complete merger between the two banks had taken effect from December 30, 2011. According to the statement, the merger of the two banks creates one of the strongest financial institutions in Nigeria, in terms of branch network, asset size, customer base and revenues, with significant operational synergies.

Commenting on the transaction, the Managing Director, Ecobank Nigeria, Mr. Jibril Aku, said, “We have a track record of success in merging banks to drive value for shareholders and deliver excellent service for our customers.  We will move expeditiously to establish a single, integrated organisation.”

The Managing Director, Oceanic Bank, Mr. John Aboh, said, “This merger with Ecobank marks a successful outcome to the rescue of Oceanic Bank. The combined entity provides shareholders and employees access to a stronger banking group. I leave with the satisfaction of having delivered value for our shareholders and opportunities for our employees. I thank the regulatory authorities for their support in the successful conclusion of this process.”

The statement pointed out that the merged entity would be a top tier bank in Nigeria, with a strong retail franchise, and a top five position in terms of assets, customer base, deposits and branches.

 It said, “The merger will result in cost savings due to economies of scale.  These savings are expected in the areas of information technology, procurement, cost of funding and elimination of duplicated costs. The merged entity will have a network of 600 branches, one of the largest branch networks in Nigeria. In particular, its footprint will cover all the major commercial and administrative centres in the country.

 The statement noted that the complementarity of Ecobank Nigeria’s multinational and local corporate clientele and Oceanic Bank’s public sector and retail customers was expected to increase business opportunities for the merged banks.

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Updated 7 Years ago

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Tags:     Ecobank oceanic merger     bank merger     Ecobank Nigeria Plc     Oceanic Bank