Tier one lender Diamond Trust Bank Kenya (DTB) will acquire small-sized bank Habib Bank Kenya, the Central Bank of Kenya (CBK) announced Tuesday.
CBK said the transaction is expected to be completed by July this year.
“The Central Bank of Kenya (CBK) announces that it has been advised by both Diamond Trust Bank of Kenya Limited (DTBKL) and Habib Bank (K) Limited (HBL) of DTBKL’s intention to acquire HBL. The transaction is subject to regulatory approvals in Kenya and Pakistan,” said CBK in a statement.
DTB’s market share grew to 6.1 per cent to rank sixth last year surpassing the five per cent mark used by the CBK to classify banks as large industry players.
It was ranked sixth out of 41 banks with a market share of 6.1 per cent as at December 31, 2016 and a network of sixty one branches around the country.
The NSE listed lender has evolved from its initial status as a community based non-bank financial institution into a fully-fledged, public-quoted commercial bank, with diversified product capability and a footprint in Kenya, Tanzania, Uganda and Burundi.
The regulator said it would provide specific details of the acquisition as the transaction progresses.
Habib Bank Kenya, a branch of Pakistan-based Habib Bank, becomes the latest lender to be acquired.
HBL was established in 1941 in Mumbai (India), and its head office moved to Karachi (Pakistan) in 1947.
The bank has been operating in Kenya since 1956 when it opened its first branch in Mombasa.
It was ranked 33rd out of 41 banks with a market share of 0.34 per cent as at December 31, and a network of six branches.