First Atlantic, Energy Bank merger bid awaiting BoG approval

The proposed merger of First Atlantic Bank and Energy Commercial Bank is receiving the attention of the Bank of Ghana as the industry regulator and its “No Objection” approval is expected shortly.

Analysts close to the transaction confirm that the combination of the banks will enable them meet the GHc400m minimum capital requirement given their current combined capital base and additional funds received from investors including Private Equity firms who are excited about the prospects of the combined entity.

In this regard it is instructive that First Atlantic itself has astute private equity investors among its shareholders who have overseen its transformation from a merchant bank into a vibrant universal bank which has diversified successfully into retail banking.

Banking sector analysts say the merged entity would have the potential to become one of the top 10 banks in Ghana with very high liquidity and profitability ratios. Indeed, the proposed merger is the only one among the three currently on the cards, in which both partners are currently reporting profits.