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Merger and Acquisition

NNPC Acquires Addax Petroleum, Expects More Investments on Assets



NNPC - Investors King

Nigeria’s energy conglomerate, Nigerian National Petroleum Company Limited (NNPCL) has disclosed that it has fulfilled all closing obligations relating to the acquisition and transfer of assets of Addax Petroleum Development Company Limited.

This came as NNPCL promised to ensure that it facilitates investments in Addax assets with a view to boosting the energy economy in the country.

The termination of the relationship between NNPCL and Addax Petroleum Development (Nigeria) Limited is coming after a 24-year Production Sharing Contract (PSC) of operations with the energy conglomerate.

To bring about a seamless kick-off of activities, the NNPCL said it has constituted a special purpose vehicle, Antan Producing Limited with interim management to take over Oil blocs OMLs 123/124 & 126/137, hitherto operated by the concessioned oil firm.

Investors King reports that after both organisations had fulfilled necessary transfer obligations, the NNPCL Group Chief Executive Officer, Mele Kyari, signed the closing documents on behalf of the company, while the outgoing Managing Director of Addax Petroleum, Yonghong Chen, signed for his company at the NNPC headquarters office in Abuja.

It could be recalled that in November 2022, Nigeria’s energy company had signed a settlement and exit agreement with Sinopec’s Addax Petroleum Development (Nigeria) to end its four major oil mining blocks in the country.

To this end, Addax would no longer be the PSC contractor for the OML 123/124 and OMLs 126/137.

A statement issued by NNPCL Chief Corporate Communications Officer, Garba Deen Muhammad, said the closing obligations were done three months after the execution of the Addax Transfer, Settlement, and Exit Agreement (ATSEA) for the PSC Oil blocks.

Muhammed promised that NNPC would fetch more investments on the assets and appoint a competent replacement PSC contractor to manage it.

He added that the NNPC Limited would continue to remain the Concessionaire of the assets in line with extant laws and regulations, adding that exit negotiations and formalities were concluded and that the energy conglomerate in collaboration with the Office of the Attorney General of the Federation, NUPRC, NMDPRA, FIRS, EFCC, and the FCCPC have agreed on the clean and amicable exit for Addax.

The NNPC Communication Officer added that the company would resolve all the PSC contractual issues, including litigations that culminated in the execution of a TSEA on the 1st of November 2022.

He said NNPCL has announced the appointment of the Transition Team lead, Mr. Sagiru Jajere, as the Managing Director of Antan Producing Limited.

Before his appointment, Jaiere was the Head of PSC Investment Management at the NNPC Upstream Investment Management Services (NUIMS).

Jaiere, according to Muhammed, would be aided by a team of highly competent personnel with in-depth knowledge of the peculiarities of the Addax Assets.

NNPCL maintained that much-needed investments would be facilitated to the over-taken Assets.

The company also said it would create value for the PSC and prudently conduct petroleum activities in it.

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Merger and Acquisition

Access Bank Zambia Granted Approval for Atlas Mara Zambia Merger



Access bank

Access Holdings Plc has announced that its subsidiary, Access Bank Zambia Limited, has received final regulatory approval from the Central Bank of Zambia for the acquisition and merger of African Banking Corporation Zambia Limited (Atlas Mara Zambia).

The move is a significant step towards the creation of one of the top five banks in Zambia.

Sunday Ekwochi, Company Secretary of Access Holdings, stated that the latest development is a big step towards the earlier announcement made on October 25, 2021.

This approval comes after the Central Bank of Nigeria (CBN) and Common Market for Eastern and Southern Africa Competition Commission granted their “no objection” to the transaction in 2022.

Access Zambia will now begin the process of integrating and merging Atlas Mara Zambia into its existing operations. The merger is expected to boost Access Bank Zambia’s position in the Zambian banking sector and create more opportunities for its customers.

Access Holdings Plc is committed to expanding its operations and presence in Africa, and this acquisition and merger is a testament to its efforts in achieving that goal. The company believes that this move will strengthen its position as a leading financial services provider in the region.

Dr. Herbert Wigwe, Group Chief Executive Access Holdings, while commenting on the transaction, said: “The transaction builds on our earlier acquisition and merger of Cavmont Bank Plc into Access Bank Zambia and underscores our resolve to strengthen our presence in Zambia, a key African market that fits into our strategic focus on geographic earnings growth and diversification”.

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Merger and Acquisition

First Citizens BancShares Acquires Silicon Valley Bank’s Deposits and Loans in FDIC-Assisted Deal



Silicon Valley Bank

On Monday, First Citizens BancShares Inc announced that it had acquired the deposits and loans of Silicon Valley Bank (SVB) following its failure earlier this month.

This acquisition marks a significant step forward in addressing the global financial markets’ ongoing crisis of confidence.

As part of the deal, First Citizens BancShares will assume SVB’s assets including $110 billion in assets, $56 billion in deposits, and $72 billion in loans. The Federal Deposit Insurance Corporation (FDIC), which took control of SVB, will receive equity appreciation rights in First Citizens BancShares stock with a potential value of up to $500 million.

First Citizens BancShares described itself as having completed more FDIC-assisted transactions since 2009 than any other bank. It believes that the combined company will be resilient with a diverse loan portfolio and deposit base.

The bank’s statement also noted that its prudent risk management approach would continue to protect customers and stockholders through all economic cycles and market conditions.

In addition to the acquisition, First Citizens BancShares will receive a line of credit from the FDIC for contingent liquidity purposes. Again, the bank will have an agreement with the regulator to share some losses on commercial loans to provide further downside protection against potential credit losses.

While analysts said the move was positive for financial stability and the venture capital industry, they noted that it only addressed the issue of deposits leaving smaller banks for larger banks or money market funds up to a point.

Redmond Wong, Greater China market strategist at Saxo Markets, said that “First Citizens Bank’s acquisition of the SVB loan book and deposits does not add much to solve the number one issue that the U.S. banking system is now facing.”

SVB’s failure was the largest bank to fail since the 2008 financial crisis. Its closure on March 10th caused massive market disruption and heightened stresses across the banking sector globally. The acquisition of its deposits and loans by First Citizens BancShares is a step towards stabilizing the sector and restoring confidence in the global financial markets.

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Merger and Acquisition

Chad Nationalizes Exxon Mobil Assets Amidst Controversy




The Chadian government has announced that it has nationalized all assets and rights, including hydrocarbon permits and exploration and production authorizations, that belonged to Exxon Mobil’s subsidiary in the country.

The move comes after Exxon Mobil closed the sale of its operations in Chad and Cameroon to London-listed Savannah Energy in a $407 million deal in December.

However, the Chadian government contested the agreement, stating that the final terms were different from what Exxon Mobil had presented. It warned that it may ask courts to block Savannah’s purchase of Exxon’s assets in the country and take further steps to protect its interests.

The nationalized assets include a 40% stake in Chad’s Doba oil project, which comprises seven producing oilfields with a combined output of 28,000 barrels per day. It also includes Exxon’s interest in the more than 1,000 kilometer Chad/Cameroon pipeline from the landlocked nation to the Atlantic Gulf of Guinea coast through which its crude is exported.

Exxon Mobil and Savannah Energy were not immediately available for comment on the matter.

This move by the Chadian government is not entirely surprising given the controversy surrounding the sale of Exxon Mobil’s assets to Savannah Energy. It remains to be seen what actions the government will take to protect its interests and whether Savannah Energy will be able to proceed with its purchase of Exxon’s assets in Chad.

The nationalization of Exxon Mobil’s assets in Chad is part of a broader trend of governments taking greater control of their natural resources. Many countries in Africa and beyond have been pushing for greater control over their resources and a larger share of the profits generated by foreign companies operating in their territories.

As natural resources become increasingly important in the global economy, it is likely that we will continue to see governments taking a more assertive approach to the management of their resources. The challenge for companies like Exxon Mobil will be to navigate these complex and evolving political landscapes while also delivering value to their shareholders.

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