Equity Bank has ended acquisition talks for for Atlas Mara Limited’s banking units, media reports said. These banking units are in Zambia, Mozambique, Tanzania and Rwanda.
The reason for terminating acquisition talks is attributed to the protracted pandemic and the uncertainty that follows. This bank’s decision is in line with the board’s view, media reports said.
Equity Bank Group CEO James Mwangi, told the media, “Board of Directors have agreed to the entry into a binding term sheet through a share swap to exchange certain banking assets of Atlas Mara in four countries for shares in Equity Group.”
In January, it was reported that Equity Group’s plan to acquire four banks in Rwanda, Zambia, Mozambique and Tanzania will delay as the buyout deal was not made within the stipulated deadline. However, Equity and Atlas had planned to continue discussion further in 2020 to reach a mutual deal.
Now the pandemic has forced the bank to change its decision in acquisition plans. With that, the bank is more focused on conserving cash and liquidity to support customers during uncertain times. ”A strong capital and liquidity position gives us the strength and capacity to cushion our business, accommodate and walk with our customers during these challenging times,’’ Mwangi said.