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Ecobank-Sterling merger plan crashes

Posted by By SEUN ADESIDA on 2008/05/03 | Views: 761 |

Ecobank-Sterling merger plan crashes

The proposed merger between Ecobank Nigeria Plc and Sterling Bank Nigeria Limited may not materialise afterall.

The proposed merger between Ecobank Nigeria Plc and Sterling Bank Nigeria Limited may not materialise afterall.

According to sources, both banks have decided to stay action on the merger, “having duly considered the current business climate and the ever-changing dynamics in the market.”

Despite the shelved plan, the banks say that since mergers and acquisition have become part of Nigeria’s business environment, especially among banks, the possibility of them coming together in future cannot be foreclosed.

In the words of a bigwig in one of the banks, “we have, however, not foreclosed the possibility of re-opening the discussions in future.”

To many financial analysts, the latest development is not surprising. According to them, both banks had, during the merger plan, last October, stated that it was market-induced. This was unlike the pre-consolidation merger, which was regulatory-induced under the watchful eyes of the Central Bank of Nigeria (CBN).

Ecobank Nigeria, a member of the Pan-African Banking Group, based in Lome, Togo, maintains its irresistible attribute of a continental coverage. The group has, in the last two years, embraced an aggressive growth strategy, which sees it bestride across 22 countries, covering the west, central and eastern African countries.

Within the last few months, Ecobank Nigeria has grown in branch network, to attain over 200 branches in 2007, from its 27 branches in 2005.
Sterling Bank, on the other hand, boasts of solid pedigree in investment banking, ranking among the top three in the business portfolio.

The bank also operates SBG Insurance Brokers; Sterling Registrars Limited; Sterling Asset Management and Trustees Limited as well as Safeguard Savings and Loan Limited.
Sterling Bank's Group Managing Director, Mr. Yemi Adeola, recently, while addressing the press, affirmed that the progress made so far in their merger talks with Ecobank would be communicated to the public this month.

In the view of the failed merger plan, financial analysts say that the Nigerian Stock Exchange should lift the suspension of the stocks of Ecobank Nigeria and Sterling Bank, which were placed on technical suspension last November.

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Comments (2)

Toluwalase Samuel Olufemi(Ijebu, Ogun, Nigeria)says...

Authority belongs to God, once He decrees it is final and binding

Ikponmwosa Osamede(Edo, Nigeria)says...

Your meaning of Osamede is wrong. Osamede means God has given me a crown