Regulatory Alerts2020-06-22
Mergers and Acquisitions Directive
The Bank of Ghana has issued the Mergers and Acquisitions Directive to mandate prior regulatory approval for mergers, acquisitions, amalgamations, and significant share transfers involving banks, specialized deposit-taking institutions, and financial holding companies. The directive establishes comprehensive fit-and-proper criteria, capital and ownership concentration thresholds, and standardized application procedures that require applicants to submit due diligence reports, valuation certificates, and board resolutions within prescribed timelines. Upon reviewing complete applications within six months, the Bank of Ghana may grant or refuse approvals based on financial system stability and depositor interests, while retaining the authority to impose remedial sanctions such as annulling transactions or restricting voting rights for non-compliance.