Amid reports on Monday about merger plans between Access Bank and Diamond Bank, the capital market regulatory authority, the Securities and Exchange Commission (SEC), has given clarification on the current situation.

The commission, in a statement by its spokesperson, Efe Ebelo, sent to PREMIUM TIMES said only a notice to merge has been received from the management of the two banks and not the actual merger.

In the statement titled: SEC’s position on Access Bank/Diamond Bank merger, the commission said: “The Securities and Exchange Commission (SEC) is aware of the intention of Access Bank and Diamond Bank to go into a merger.

“Access Bank and Diamond Bank have both notified the Commission and the general public. It is a notice to merge. They have not merged yet. SEC is awaiting their application on the matter.

“The SEC received on Monday, December 17, 2018, notice of intention by Diamond Bank & Access Bank to merge. The Commission is currently waiting for their formal Application,” the statement said.

Earlier, Diamond Bank, in a statement regarding its scheme to merge with Access Bank, said its Board of directors selected Access Bank as the preferred bidder with respect to a potential merger of the two banks.

The bank said the completion of the merger was subject to certain shareholder and regulatory approvals.

“The proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger.

“Based on the agreement reached by the Boards of the two financial institutions, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising of N1.00 per share in cash and the allotment of two New Access Bank ordinary shares for every seven Diamond Bank ordinary shares held as at the Implementation date,” it announced.