Fred Aminga @faminga
The proposed merger between NIC Group Plc and Commercial Bank of Africa (CBA) has taken another major step forward with a new leadership announcement.
A joint statement issued yesterday said that upon finalisation of the merger and subject to regulatory approval, Isaac Awuondo, currently the Group Managing Director of CBA will become Chairman of the Kenyan banking subsidiary and maintain direct oversight over the Digital Business.
In this role, Awuondo will continue to provide the day-to-day leadership of the Digital Business as the merged group develops a long term strategy.
John Gachora, currently the Group Managing Director of NIC Group will become the Group Managing Director and Chief Executive Officer of the combined entity, the statement added. He will be responsible for the day-to-day management of the Group’s businesses.
The statement signed by James Ndegwa, chairman, NIC Group Plc and Desterio Oyatsi chairman, Commercial Bank of Africa Ltd said the executive team to support Awuondo and Gachora would be announced in due course.
“In the interim and until the merger is approved by all requisite regulators, the two companies will continue to operate independently,” it said.
As noted previously, the statement added, one of the key strengths of the combined entity will be its digital banking capability and the merged group intends to extract full value from this capability by creating a distinct digital business with a separate board.
In the new look, it said, both NIC Group and CBA will operate under a new name and brand, which will be determined prior to concluding the merger. In Kenya, the operating commercial bank is intended to be the current CBA, which will, however, be renamed.
Competition Authority of Kenya approved the proposed merger between the two financial institutions last week.