Tanzania’s only bank with international outlets Exim Bank of Tanzania has announced plans of total take over of the Tanzania’s subsidiary of Pakistan’s UBL Bank. Exim Bank which has operations in Comoros, Uganda and Djibouti and it is the 5th biggest bank in Tanzania by assets and bank accounts.

The bank has announced that it has already made an offer for the purchase as well as signing a letter of intent to the purchase of the Pakistan based bank. UBL has more than 1,220 branches in Pakistan, as well as 17 branches in the United States and throughout the Arab Peninsula.

The acquisition whose value was not disclosed will however await statutory approval both in Tanzania and Pakistan and is not expected to be done before June 2019. The banks are however positive of the approval especially with the Bank of Tanzania as they aim to exploit BoT’s policy on mergers and consolidation.

In a period in which banks in East Africa are opting for Mergers & Acquisition (M&A) to strengthen their capital base and compete effectively with pan African banks, Exim Bank of Tanzania is strategizing to position itself as a truly international bank.

The Bank’s operations span Dar es Salaam, Zanzibar, Tanga, Morogoro, Kilimanjaro, Arusha, Manyara, Mwanza, Shinyanga, Kigoma, Iringa, Mbeya and Mtwara regions in Tanzania and overseas subsidiaries in the Anjouan, Moheli and Moroni Islands of the Union of Comoros, in the Republic of Djibouti and Uganda– an international presence unmatched by other Tanzanian banks.

Exim Bank Tanzania deputy CEO Jaffari Matudu said he was delighted by the diverse base of customers that will be joining his bank from UBL Bank.

“This acquisition will be a natural expansion and strengthening of our existing network and market share in the country. We believe with UBLT seasoned staff and our innovative banking style will enable us to offer market leading products to our customers. We look forward to extending our services to UBTL customers in our branches.”

According to an official notification issued by UBL to the Pakistan Stock Exchange (PSX), the entity of UBTL and its banking license will remain intact for the time being. The announcement further notifies that this decision is a part of UBL’s strategy for global re-positioning and realignment based on purely commercial considerations.

Source: The Exchange