South Africa’s Nedbank Group has committed to retaining all current NCBA employees after completing its proposed acquisition of the Kenyan lender, seeking to ease typical concerns that accompany large cross-border bank deals in East Africa.
NCBA confirmed the assurances in a Monday notice, stating that its staff would play a central role in Nedbank’s regional expansion strategy. The pledge was a key factor behind NCBA’s board recommending the transaction to shareholders.
“The offeror has confirmed that following completion of the proposed transaction, the existing contractual and statutory employment rights of NCBA management and employees will remain in full force,” the bank said. “NCBA management and employees will play an important role in the future development of the enlarged group.”
The move signals a shift from recent mergers and acquisitions in the region, which often come with branch closures, system consolidation, and job cuts, as Nedbank focuses on expansion rather than cost-cutting.
Nedbank first announced a tender offer for a 66% stake in NCBA on January 21, giving the South African lender a substantial foothold in East Africa. While the initial documents did not address staffing, NCBA chief executive John Gachora emphasized that minimizing disruption to operations, the brand, and the workforce was central to the board’s recommendation.
NCBA employed 3,712 people at the end of December 2024, up from 3,462 a year earlier. Under the proposed deal, NCBA will retain its existing board structure, with Nedbank nominating at least two directors and current NCBA shareholders appointing one representative to Nedbank’s board.
The transaction values NCBA at $7.6 billion, with shareholders able to tender up to 66% of their holdings. Eighty percent of the consideration will be through a share swap, with the remaining 20% paid in cash at KES 2,100 ($16.28) per 100 shares.