Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The merger is expected to take place in the first quarter of 2017/AFP


Two Abu Dhabi banks to merge to become largest MENA lender

The merger is expected to take place in the first quarter of 2017/AFP

The merger is expected to take place in the first quarter of 2017/AFP

ABU DHABI, United Arab Emirates, Jul 4 – Two Abu Dhabi-based banks have agreed to merge to create the single largest lender in the Middle East and North Africa, a statement said on Sunday.

The boards of the National Bank of Abu Dhabi (NBAD) and the First Gulf Bank (FGB) voted unanimously in favour of the merger, which would create a lender with assets worth $175 billion, the banks said in a statement posted on the Abu Dhabi bourse.

The merger which is expected to take place in the first quarter of 2017 still requires approval from the general assemblies of both banks, the statement said.

The new bank would become the leading financial institution in the United Arab Emirates, with 26 percent share of outstanding loans, it said.

It would have a combined market capitalisation of $29.1 billion and offices in 19 countries, it said.

“The proposed merger will create a bank with the financial strength, expertise, and global network to support the UAE’s economic ambitions,” the statement said.

The government of oil-rich Abu Dhabi one of the seven emirates that make up the UAE would own a 37-percent stake in the new bank.

The merger would be executed through a share swap, with FGB shareholders receiving 1.254 NBAD shares for each FGB share.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...