5 Reasons Why Access Bank Bought Diamond Bank


Before telling why Access Bank took over Diamond Bank, do you know who owns Diamond Bank?

Wikipedia says he is Pascal Dozie, a native of Egbu in the northern part of Owerri, Imo State of Nigeria, who studied at London School of Economics, where he earned his degree in Economics, and then a Masters in Administration from City University in London in 1963.

READ ALSO: Access Bank Acquires Diamond Bank

He is best known for his role as the founder and former Chairman of Diamond Bank Plc which opened its doors to business in 1991.

Pascal Dozie was the former Chairman of the Board of MTN Nigeria.

His other business investments and interests include ADIC Insurance Limited and Aluminium Extrusion Industries PlC. He is a former Director of the Central Bank of Nigeria and one time President of the Nigerian Stock Exchange and until recently, he was Chairman of the Nigeria Economic Summit Group.

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Uzoma Dozie (Photo) son of Mr Pascal has been Managing Director of the bank till the acquisition.
Now here are the 5 reasons why the takeover was inevitable according to Industry watchers:

1. The Dozie family owners of Diamond Bank have billions of naira worth of nonperforming loans it took from Access bank and Access Bank which is likely not performing and any deal short of an acquisition may have thus negatively impacted on the loans thus the need for the takeover.

2. The deal gives an opportunity for Access Bank to be the largest bank in Nigeria by Asset Base. In terms of profitability and returns on equity, Access Bank is behind GT Bank and Zenith Bank.

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3.CBN and SEC have approved the transaction in the light of the reality on ground.

4. Shareholders of Diamond bank will be happy that their investments are now in safe hands under a new stronger management rather losing all out.

5. Sources suggest the Diamond Bank majority shareholder Carlyle investment which had offered to bail out the bank but was rejected by the Dozie family after they requested for the resignation of Uzoma Dozie the CEO of Diamond Bank sees the acquisition as a better move.