South Africa’s Nedbank Group (NEDJ.J) plans to acquire a 66 percent stake in Kenya’s NCBA Group (NCBA.NR) in a cash-and-stock deal worth 13.9 billion rand ($855.5 million), Reuters reported on Wednesday.

If completed, NCBA would become a subsidiary of Nedbank while retaining its existing brand, local management, and separate listing on the Nairobi Securities Exchange, where the remaining 34 percent of shares would continue to trade.

The transaction would be structured with 20 percent of the consideration paid in cash and the remaining 80 percent issued as new Nedbank ordinary shares on the Johannesburg Stock Exchange. The deal is based on Nedbank’s current share price of 250 rand per share.

NCBA, headquartered in Nairobi, was formed in 2019 through the merger of NIC Group and Commercial Bank of Africa. The group operates in Kenya, Uganda, Tanzania, and Rwanda, and provides digital banking services in Ghana and Ivory Coast. It serves more than 60 million customers through 122 branches, Reuters noted.

Jason Quinn, Nedbank Group’s Chief Executive, said the acquisition represents a major step in the bank’s expansion across southern and East Africa. He highlighted the combination of NCBA’s local presence with Nedbank’s capital and expertise as a “compelling platform for sustainable growth in the region.”

Reuters reported that Nedbank sees East Africa as strategically important due to strong macroeconomic fundamentals, a growing population, and its role as a trade corridor linking Africa with the Middle East, India, and Asia.

The proposed deal underscores Nedbank’s ambitions to strengthen its footprint in East Africa, reflecting the bank’s focus on markets with both significant customer bases and cross-border trade opportunities.