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49-803: Access Bank Group is a financial services conglomerate , headquartered in Nigeria , with subsidiaries in Angola , the Democratic Republic of the Congo , Ghana , Ivory Coast , Kenya , Nigeria , Rwanda , The Gambia , Guinea , Cameroon , Sierra Leone , Mozambique , Botswana , South Africa , Tanzania , Uganda , Zambia , France and the United Kingdom . The group also maintains representative offices in China , India , Lebanon and United Arab Emirates . In May 2023,

98-429: A market inefficiency , which undervalues the true strength of these stocks. In her 1999 book No Logo , Naomi Klein provides several examples of mergers and acquisitions between media companies designed to create conglomerates to create synergy between them: A relatively new development, Internet conglomerates, such as Alphabet , Google's parent company belong to the modern media conglomerate group and play

147-632: A public offering , registering a 133% oversubscription. The same year, the bank received the Hewlett Packard Award for the best implementation of a basic banking application ( Flexcube 6.2 ) in West Africa. The following year, Access Bank acquired Capital Bank and Marina Bank through a merger by absorption and integration. During 2007, Access Bank became the first Nigerian bank to introduce Visa credit cards in Nigeria and achieved EMV certification for

196-636: A Ugandan commercial bank that specializes in lending to women customers and women-led businesses. In July 2023, Access Bank Group reached binding agreements with Standard Chartered Plc (SCB) of the United Kingdom for the Access group to acquire SCB shareholding in subsidiaries domiciled in Angola , Cameroon , Gambia and Sierra Leone . Access will also buy SCB's consumer, private & business banking business in Tanzania . The deal requires regulatory approval in

245-460: A binding pact to merge its Zambian unit with African Banking Corporation Zambia Limited in a planned reformation coming barely 9 months after it bought the subsidiary . The agreement confirms Access Bank's will to broaden its presence in the Southern African country to 70 branches and agencies, customer base to 300,0000, and total assets with a value in the neighbourhood of US$ 1 billion through

294-634: A continent-wide free trade agreement. The target markets are Morocco, Algeria, Egypt, Côte d'Ivoire, Senegal , Angola , Namibia and Ethiopia , which would extend the international presence of the bank to 18 countries. Access Bank is expected to establish offices in some countries and in others, should partner with existing banks and leverage its digital platforms to provide services to clients. In January 2024, Access Bank made binding commitments, subject to regulatory approval in Nigeria and Uganda, to acquire 80 percent shareholding in Finance Trust Bank ,

343-480: A disorienting and demoralizing experience for executives at acquired companies—those who were not immediately laid off found themselves at the mercy of the conglomerate's executives in some other distant city. Most conglomerates' headquarters were located on the West Coast or East Coast , while many of their acquisitions were located in the country's interior. Many interior cities were devastated by repeatedly losing

392-540: A focus in Asia.) In Japan, a different model of conglomerate, the keiretsu , evolved. Whereas the Western model of conglomerate consists of a single corporation with multiple subsidiaries controlled by that corporation, the companies in a keiretsu are linked by interlocking shareholdings and a central role of a bank. Mitsui , Mitsubishi , Sumitomo are some of Japan's best-known keiretsu, reaching from automobile manufacturing to

441-518: A major role within various industries, such as brand management . In most cases, Internet conglomerates consist of corporations that own several medium-sized online or hybrid online-offline projects. In many cases, newly joined corporations get higher returns on investment , access to business contacts, and better rates on loans from various banks. Similar to other industries many companies can be termed as conglomerates. Public offering The services of an underwriter are often used to conduct

490-402: A public offering. Initial public offering (IPO) is one type of public offering. Not all public offerings are IPOs. An IPO occurs only when a company offers its shares (not other securities) for the first time for public ownership and trading, an act making it a public company . However, public offerings are also made by already-listed companies. The company issues additional securities to

539-625: A small slice of many companies in a fund rather than owning shares in a conglomerate. Another example of a successful conglomerate is Warren Buffett 's Berkshire Hathaway , a holding company which used surplus capital from its insurance subsidiaries to invest in businesses across a variety of industries. The end of the First World War caused a brief economic crisis in Weimar Germany , permitting entrepreneurs to buy businesses at rock-bottom prices. The most successful, Hugo Stinnes , established

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588-472: Is currently China's largest civilian-run conglomerate by revenue. In South Korea , the chaebol is a type of conglomerate owned and operated by a family. A chaebol is also inheritable, as most of the current presidents of chaebols succeeded their fathers or grandfathers. Some of the largest and most well-known Korean chaebols are Samsung , LG , Hyundai Kia and SK . In India, family-owned enterprises became some of Asia's largest conglomerates, such as

637-462: Is now Africa ’s largest bank by customer base, and the largest bank in Nigeria by assets. As of 30 June 2024, Access Bank Group announced total assets of NGN 36.5 trillion (approx. US$ 22.419 billion), with shareholders' equity of NGN 2.8 trillion (approx. US$ 1.72 billion). As of that time, the group maintained operational banking subsidiaries in 20 countries in Sub-Saharan Africa , Europe and

686-401: Is often used by companies in exactly that situation. Instead of drafting one before each public offering, the company can file a single prospectus detailing the terms of many different securities it might offer in the next several years. Shortly before the offering (if any) actually takes place, the company informs the public of material changes in its finances and outlook since the publication of

735-555: The Aditya Birla Group , Tata Group , Emami , Kirloskar Group , Larsen & Toubro , Mahindra Group , Bajaj Group , ITC Limited , Essar Group , Reliance Industries , Adani Group and the Bharti Enterprises . In Brazil the most important conglomerates are J&F Investimentos , Odebrecht , Itaúsa , Camargo Corrêa , Votorantim Group , Andrade Gutierrez , and Queiroz Galvão. In New Zealand, Fletcher Challenge

784-562: The Apapa district of Lagos . In March 1998, Access Bank changed its legal status and became a public limited company and in the same year, on 18 November, entered the Nigeria Stock Exchange . In 2002, Aigboje Aig-Imoukhuede was appointed managing director and Herbert Wigwe , Deputy Managing Director, with the mandate of raising the bank from 65th place to the top 10 in 2007. In 2003, Access Bank raised more than NGN 14.5 billion with

833-582: The Middle East . In 2018, Access Bank Nigeria , which accounts for approximately 75 percent of the groups assets, agreed to merge with Diamond Bank , another Nigerian commercial bank that was struggling to maintain regulatory capital ratios. The transaction required regulatory and shareholder approval from both banks. The merger was completed in March 2019. The combined bank retained the name Access Bank Nigeria. On 24 October 2021, Access Bank announced it has entered

882-594: The United States , conglomerates became popular in the 1960s as a form of economic bubble driven by low interest rates and leveraged buyouts. However, many of them collapsed or were broken up in the 1980s due to poor performance, accounting scandals, and antitrust regulation. In contrast, conglomerates have remained prevalent in Asia, especially in China , Japan , South Korea , and India . In mainland China , many state-affiliated enterprises have gone through high value mergers and acquisitions , resulting in some of

931-572: The highest value business transactions of all time. These conglomerates have strong ties with the government and preferential policies and access to capital. During the 1960s, the United States was caught up in a "conglomerate fad " which turned out to be a form of an economic bubble . Due to a combination of low interest rates and a repeating bear-bull market , conglomerates were able to buy smaller companies in leveraged buyouts (sometimes at temporarily deflated values). Famous examples from

980-446: The primary market , that is, the issuing company itself is the offerer of securities to the public. The offered securities are then issued (allocated, allotted) to the new owners. If it is an offering of shares, this means that the company's outstanding capital grows. If it is an offering of other securities, this entails the creation or expansion of a series (of bonds, warrants, etc.). However, more rarely, public offerings take place in

1029-487: The secondary market . This is called a secondary market offering : existing security holders offer to sell their stake to other, new owners, through the stock exchange. The offerer is different from the issuer (the company). A secondary market offering is still a public offering with much the same requirements, including a prospectus. In the United States, primary offerings are typically done via Form S-1 filings while secondary offerings often use Form S-3 to issue through

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1078-440: The 1960s include Gulf and Western Industries , Ling-Temco-Vought , ITT Corporation , Litton Industries , Textron , and Teledyne . The trick was to look for acquisition targets with solid earnings and much lower price–earnings ratios than the acquirer. The conglomerate would make a tender offer to the target's shareholders at a princely premium to the target's current stock price. Upon obtaining shareholder approval,

1127-618: The 1980s, General Electric also moved into financing and financial services , which in 2005 accounted for about 45% of the company's net earnings. GE formerly owned a minority interest in NBCUniversal , which owns the NBC television network and several other cable networks . United Technologies was also a successful conglomerate until it was dismantled in the late 2010s. With the spread of mutual funds (especially index funds since 1976), investors could more easily obtain diversification by owning

1176-448: The United Kingdom, Nigeria and in each of the five respective subsidiary domiciles. Completion of the acquisition is expected during H2 of 2024. In July 2021, the French government manifested its will to strengthen its ties with Nigerian captains of industry including Herbert Wigwe , the group managing director of Access Bank, and announced that an agreement had been signed which would allow

1225-598: The United States, some of the examples are The Walt Disney Company , Warner Bros. Discovery and The Trump Organization (see below). In Canada, one of the examples is Hudson's Bay Company . Another such conglomerate is J.D. Irving, Limited , which controls a large portion of the economic activities as well as media in the Province of New Brunswick . Some cite the decreased cost of conglomerate stock (a phenomenon known as conglomerate discount ) as evidential of these disadvantages, while other traders believe this tendency to be

1274-641: The bank group opened an operational banking subsidiary in Paris, France . It is reported that the French subsidiary will first focus on funding trade finance between France and francophone Africa , before opening subsidiaries in French-speaking Africa . As of July 2021, the group serviced in excess of 42 million customers in Africa . After the merger of Access Bank Plc. and Diamond Bank on 1 April 2019, Access Bank Plc

1323-649: The bank's medium term note programme is a Basel III compliant Perpetual Non-Call 5.25-year Subordinated Note to be heated on the London Stock Exchange . The Eurobond may be called anytime from 7 October 2026, subject to conditions including the Central Bank of Nigeria 's approval. The bank was founded in 1988 and incorporated as a private commercial bank in February 1989. It actually began operations on 11 May 1989, establishing its first office located at Burma Road in

1372-515: The banking groups headquarters are: 06°26'00.0"N, 03°26'36.0"E (Latitude: 6.433459, Longitude: 3.445069). Conglomerate (company) A conglomerate ( / k ə ŋ ˈ ɡ l ɒ m ə r ə t / ) is a type of multi-industry company that consists of several different and unrelated business entities that operate in various industries. A conglomerate usually has a parent company that owns and controls many subsidiaries , which are legally independent but financially and strategically dependent on

1421-476: The combined entity. On mid-October 2021, Access Bank announced that the group has finalised the acquisition of 78.15 percent shareholding in the African Banking Corporation of Botswana, otherwise known as BancABC Botswana . On 4 October 2021, the group issued a $ 500 million Eurobond, priced at 9.125 percent. According to Access Bank Group, this additional Tier One Eurobond which is issued under

1470-455: The conglomerate usually settled the transaction in something other than cash, like debentures , bonds , warrants or convertible debentures (issuing the latter two would effectively dilute its shareholders down the road, but many shareholders at the time were not thinking that far ahead). The conglomerate would then add the target's earnings to its earnings, thereby increasing the conglomerate's overall earnings per share . In finance jargon,

1519-462: The end came in January 1968, when Litton shocked Wall Street by announcing a quarterly profit of only 21 cents per share, versus 63 cents for the previous year's quarter. This was "just a decline in earnings of about 19 percent", not an actual loss or a corporate scandal, and "yet the stock was crushed, plummeting from $ 90 to $ 53". It would take two more years before it was clear that the conglomerate fad

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1568-751: The examples are Adamjee Group , Dawood Hercules , House of Habib , Lakson Group and Nishat Group . In the Philippines , the largest conglomerate of the country is the Ayala Corporation which focuses on malls , bank , real estate development , and telecommunications . The other big conglomerates in the Philippines included JG Summit Holdings , Lopez Holdings Corporation , ABS-CBN Corporation , GMA Network, Inc. , MediaQuest Holdings , TV5 Network, Inc. , SM Investments Corporation , Metro Pacific Investments Corporation , and San Miguel Corporation . In

1617-609: The group to settle in France . This agreement confirms the group's vision and desire to extend its influence and activities to all of France and gradually to all of Europe. The opening of Access Bank in Paris will be managed by the group's London branch, headed by Britain's Jamie Simmonds. The new offices in France will focus on trade finance. The Nigerian bank is also considering embarking on investment and wealth management services. As of October 2024

1666-699: The headquarters of corporations to mergers, where ventures were reduced to subsidiaries of conglomerates based in New York or Los Angeles. Pittsburgh, for example, lost about a dozen. The terror instilled by the mere prospect of such harsh consequences for executives and their home cities meant that fending off takeovers, real or imagined, was a constant distraction for executives at all corporations seen as choice acquisition targets during this era. The chain reaction of rapid growth through acquisitions could not last forever. When interest rates rose to offset rising inflation, conglomerate profits began to fall. The beginning of

1715-405: The member companies of Access Bank Group include but are not limited to the following: The headquarters of Access Bank Group were previously located at Plot 999c, Danmole Street, Off Adeola Odeku/Idejo Street, Victoria Island, Lagos , Nigeria. In February 2020, the headquarters were relocated to Access Tower, 14/15, Prince Alaba Oniru Road, Oniru, Lagos , Nigeria. The geographical coordinates of

1764-784: The merger with Diamond Bank was announced in March 2019. In March 2021, Access Bank announced the acquisition of a stake in Grobank, a South African bank, for US$ 60 million. In March 2024, Access Bank Group signed binding contracts to acquire National Bank of Kenya , a subsidiary of the Kenya Commercial Bank Group . The transaction which requires regulatory approval in Kenya and Nigeria, is expected to conclude in Q4 2024. In early 2021, Access Bank announced that it had identified eight new African countries for potential expansion, seeking to benefit from

1813-503: The most powerful private economic conglomerate in 1920s Europe – Stinnes Enterprises – which embraced sectors as diverse as manufacturing, mining, shipbuilding, hotels, newspapers, and other enterprises. The best-known British conglomerate was Hanson plc . It followed a rather different timescale than the U.S. examples mentioned above, as it was founded in 1964 and ceased to be a conglomerate when it split itself into four separate listed companies between 1995 and 1997. In Hong Kong, some of

1862-599: The multi-card ATM services platform. It also received funding from the Belgian Investment Company for Developing Countries . Access Bank successfully concluded its 3rd public offering in 2008, raising more than US$ 1 billion. In 2009, Access Bank merged with the Intercontinental Commercial Bank (ICB) and was listed the same year (2012) on the LSE ( London Stock Exchange ). A 350 million dollars Eurobond

1911-653: The new businesses they had recently purchased, and by the mid-1970s most conglomerates had been reduced to shells. The conglomerate fad was subsequently replaced by newer ideas like focusing on a company's core competency and unlocking shareholder value (which often translates into spin-offs ). In other cases, conglomerates are formed for genuine interests of diversification rather than manipulation of paper return on investment. Companies with this orientation would only make acquisitions or start new branches in other sectors when they believed this would increase profitability or stability by sharing risks. Flush with cash during

1960-731: The parent company. Conglomerates are often large and multinational corporations that have a global presence and a diversified portfolio of products and services. Conglomerates can be formed by merger and acquisitions , spin-offs , or joint ventures . Conglomerates are common in many countries and sectors, such as media , banking , energy , mining , manufacturing , retail , defense , and transportation . This type of organization aims to achieve economies of scale , market power, risk diversification , and financial synergy. However, they also face challenges such as complexity, bureaucracy , agency problems, and regulation . The popularity of conglomerates has varied over time and across regions. In

2009-714: The production of electronics such as televisions. While not a keiretsu, Sony is an example of a modern Japanese conglomerate with operations in consumer electronics , video games , the music industry , television and film production and distribution , financial services , and telecommunications . In China, many of the country's conglomerates are state-owned enterprises , but there is a substantial number of private conglomerates. Notable conglomerates include BYD , CIMC , China Merchants Bank , Huawei , JXD , Meizu , Ping An Insurance , TCL , Tencent , TP-Link , ZTE , Legend Holdings , Dalian Wanda Group , China Poly Group , Beijing Enterprises , and Fosun International . Fosun

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2058-399: The public, adding to those currently being traded. For example, a listed company with 8 million shares outstanding can offer to the public another 2 million shares. This is a public offering but not an IPO. Once the transaction is complete, the company will have 10 million shares outstanding. Non-initial public offering of equity is also called seasoned equity offering . A shelf prospectus

2107-487: The shelf prospectus. Other types of securities, besides shares, can be offered publicly. Bonds , warrants , capital notes and many other kinds of debt and equity vehicles are offered, issued and traded in public capital markets. A private company , with no shares listed publicly, can still issue other securities to the public and have them traded on an exchange. A public company may also offer and list other securities alongside its shares. Most public offerings are in

2156-406: The transaction was " accretive to earnings." The relatively lax accounting standards of the time meant that accountants were often able to get away with creative mathematics in calculating the conglomerate's post-acquisition consolidated earnings numbers. In turn, the price of the conglomerate's stock would go up, thereby re-establishing its previous price-earnings ratio, and then it could repeat

2205-425: The well-known conglomerates include Jardine Matheson (AD1824), Swire Group (AD1816), (British companies, one Scottish one English; companies that have a history of over 150 years and have business interests that span across four continents with a focus in Asia.) C K Hutchison Whampoa (now CK Hutchison Holdings ), Sino Group , (both Asian-owned companies specialize business such as real estate and hospitality with

2254-663: The whole process with a new target. In plain English, conglomerates were using rapid acquisitions to create the illusion of rapid growth. In 1968, the peak year of the conglomerate fad, U.S. corporations completed a record number of mergers: approximately 4,500. In that year, at least 26 of the country's 500 largest corporations were acquired, of which 12 had assets above $ 250 million. All this complex company reorganization had very real consequences for people who worked for companies that were either acquired by conglomerates or were seen as likely to be acquired by them. Acquisitions were

2303-490: Was also successfully raised in parallel. During 2018, Access Bank announced its intention to acquire Diamond Bank , which had a portfolio of 29 million customers, for US$ 235 million. The group also announced a collaboration with 25 global banks to develop the principles of sustainable banking and align the sector with the United Nations sustainable development goals, and the launch of Access WhatsApp Banking. Completion of

2352-462: Was formed in 1981 from the merger of Fletcher Holdings , Challenge Corporation, and Tasman Pulp & Paper, in an attempt to create a New Zealand-based multi-national company. At the time, the newly merged company dealt in construction, building supplies, pulp and paper mills, forestry, and oil & gas. Following a series of bungled investments, the company demerged in the early 2000s to concentrate on building and construction. In Pakistan , some of

2401-487: Was on its way out. The stock market eventually figured out that the conglomerates' bloated and inefficient businesses were as cyclical as any others—indeed, it was that cyclical nature that had caused such businesses to be such undervalued acquisition targets in the first place —and their descent put "the lie to the claim that diversification allowed them to ride out a downturn." A major selloff of conglomerate shares ensued. To keep going, many conglomerates were forced to shed

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