NAIROBI, Nov. 26 (Xinhua) -- Kenya Commercial Bank (KCB) Group said on Thursday that it has signed a definitive agreement with Atlas Mara (ATMA) to acquire Banque Populaire du Rwanda (BPR) and African Banking Corporation Tanzania (BancABC).
Joshua Oigara, CEO of the KCB Group, said that the proposed transaction will see East Africa's biggest bank by assets increase its footprint within the region.
"This is through the acquisition of a 62.06 percent stake in BPR and a 100 percent stake in BancABC from ATMA in Rwanda and Tanzania, respectively," Oigara said in a statement released in Nairobi.
KCB currently has presence in Tanzania, South Sudan, Uganda, Rwanda, Burundi and a representative office in Ethiopia.
Oigara said that successful completion of the transaction is subject to obtaining shareholder and regulatory approvals in the respective countries.
He said the transaction was part of KCB's ongoing strategy to explore opportunities for new growth while investing in and maximizing returns from the group's existing businesses.
"Our growth strategy is premised on both organic and inorganic plans and we shall continue to seek opportunities that increase our shareholder's value, "said Oigara.
The Kenyan lender said that in Rwanda, upon completion of the acquisition, the resultant KCB group business is expected to see it double its market share to become the second-largest bank in the country.