This archive report was first published on 23 June 2020.
On June 23, 2020, Equity Group announced that it would be discontinuing discussions with Atlas Mara Limited regarding the acquisition of four banks.
The decision was made in light of the ongoing COVID-19 pandemic, which has caused significant economic uncertainty in the region and globally.
Equity Group's Chief Executive Officer, James Mwangi, stated that the company is focused on conserving cash and liquidity to support its customers during the economic crisis.
According to Mwangi, the board's decision to halt the transaction aligns with its Business Continuity Management, which prioritizes risk assessment and prudent risk mitigation in the face of economic uncertainty.
The proposed deal would have seen Equity Group acquire banking businesses from Atlas Mara in Rwanda, Tanzania, Zambia, and Mozambique.
However, due to the pandemic, the two parties have mutually agreed to discontinue discussions on the transaction for the foreseeable future.
