Fidelity bank has fully acquired ProCredit Savings and Loans Company, making it the first time a local bank is acquiring a foreign savings and loans company in the country.
The deal, which is yet to be approved by the bank of Ghana and shareholders of the bank will see Fidelity bank purchasing all shares held by ProCredit’s two shareholders PCH and DOEN Foundation of Netherlands.
The process for approval by the bank of Ghana and shareholders of the companies may be completed within 4 to 6 weeks.
But this is not Fidelity bank’s first move to acquire a financial institution.
The bank last year was one of few banks that begun moves to acquire Merchant bank.
ProCredit on the other hand early this year sold its Mozambique’s subsidiary to Ecobank Transnational Incorporated.
ETI acquired 96% stake in Banco ProCredit Mozambique, previously held by ProCredit Holdings and the DOEN Foundation.
The transaction has received the approval of the regulatory authorities in Mozambique and the Bank has commenced trading as Ecobank Mozambique.
Fidelity bank’s merger with Procredit will lead to the local bank expanding its branch network to 80 across the country, with 96 ATMs, 300 agencies and more than 700, 000 customers across the country.
Managing Director of Fidelity bank Edward Effah says the acquisition of ProCredit will see the bank consolidate its position as one of the top 6 banks in the country.
He adds that acquiring ProCredit will also propel Fidelity bank’s SME growth strategy.
There are fears the acquisition will affect the clients and workforce of ProCredit negatively but the ManagingDdirector of ProCredit Ghana Sarah TsienZetterli downplays such fears.
She mentioned the merger will ultimately benefit ProCredit clients and staff.
Credit: citifmonline