In this decade, mergers and acquisitions were on the rise in Ghana.
Here are 7 of the mergers and acquisitions that happened in the decade under review
1. Airtel Tigo
In 2017, Bharti Airtel merged with Millicom’s Tigo to become Ghana’s second-largest mobile operator at the time.
Even though many Ghanaians expected a change in name, the merged telcos combined the names of both companies afterward, thus AirtelTigo.
The merger which was the first in the telecom sector was done to increase share in Ghana where mobile phone use is one of the highest in Africa.
2. Ecobank and The Trust bank
In 2011, Ecobank Transnational Incorporated (Ecobank), the parent company of the Ecobank Group acquired a significant equity stake in The Trust Bank, Ghana Limited (TTB).
The transaction at the time was aimed at meeting the Bank of Ghana’s requirement for local banks to recapitalize to the tune of Gh¢ 60 million by the end of 2012.
3. Fidelity and ProCredit
Fidelity Bank logo
Fidelity Bank acquired 100% ownership of ProCredit Savings and Loans Company Ltd. (“ProCredit Ghana”) from its two shareholders ProCredit Holdings and the DEON Foundation of the Netherlands in 2014.
This came after the Bank of Ghana approved the acquisition.
The objective of the acquisition was to enable ProCredit Ghana to transfer its strong SME processes and qualified staff to Fidelity Bank to enhance the Bank’s services to Ghanaian businesses.
At the time the acquisition made Fidelity Bank the 3rd largest bank in terms of branch network with 80 branches, 300 agencies, and over 100 ATMs.
4. First Atlantic Merchant Bank Limited and Energy Commercial Bank
First Atlantic Merchant Bank Limited and Energy Commercial Bank
First Atlantic Bank and Energy Bank merged to meet the minimum capital requirement of ¢400 million.
The Energy Bank at the time was unable to raise the required amount to help them meet the new BoG ¢400 million capital requirement.
The two banks signed a Memorandum of Understanding to merge their business to help meet the new MCR by the BoG.
5. Omni Bank and Bank Sahel Sahara
OmniBank Ghana Limited and Sahel Sahara Bank Ghana Limited (BSIC) have completed their merger process in 2019.
The theme of the merger is: “Together we give you more”.
The two entities became one company effective March 4, 2019. The operating name is now OmniBSIC Bank Ghana Limited.
A statement issued after the merger said that it “was necessitated by the need to increase capital to meet the new Bank of Ghana Minimum Capital Requirement of GHS400 million. This merger represents a pooling of the expertise of two major banks with strengths in various banking services to provide more opportunities, increase access and make the merged entity attractive to the banking public.”
6. Provident Life
Old Mutual acquired a majority stake in Provident Life Assurance in 2013. The South African insurance firm acquired the stake from the indigenous company in 2013 and was officially launched in 2014.
7. Express Life
In December 2013, Prudential Life PLC announced the acquisition of Express Life following approval from the National Insurance Commission (NLC).