Zimbabwe: CBZ Holdings Promises Double Value After Acquiring 36 Percent in First Mutual

7 September 2023

The country's largest banking institution by assets and deposits, CBZ Holdings has promised to deliver double value to both shareholders and clients following the acquisition of a 36% stake in First Mutual Holdings Limited (FMHL) this week.

Addressing delegates at the Zimbabwe Stock Exchange (ZSE) headquarters Monday, CBZ CEO Blessing Mudavanhu said the latest development is in line with the growth strategy which sees the movement towards merging operations to achieve the scale needed to compete against larger corporations in Zimbabwe and in the region.

He said the FMHL business model presents a natural fit between FMHL and CBZHL as it brings to the group a giant leap into the insurance space with the former having regional operations in the SADC region which will give CBZH subsidiaries a stepping stone for expansion into the region.

"This transaction offers a diversity of and synergistic opportunities among the operational units of our two businesses further and widens its product offering to its significant client base. The combining of these with the advantages of the largest bank in the country will present a well-oiled bank assurance model to the Zimbabwe market.

"These businesses combining will expand the trading abilities of both entities across geographies thereby permitting the extension in product management and distribution capabilities, improving customer product offerings and better absorbing market shocks through deeper further diversified capital base," he said.

Mudavanhu said the transaction will add significant shareholder value to both entities but more importantly, to our country as we will ensure that the economic mass acquired will be used to underwrite larger transactions in the country.

"Our clients will be the greatest beneficiaries of this new acquired size because they will have access to a wider range of products and services," he added.

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