Fidelity Bank said on Tuesday that it has agreed to take over the United Kingdom branch of Union Bank, one of Nigeria’s oldest lender,
It was learnt that the deal is the latest phase in the train of divestments by the Union Bank which, beginning late last year. The initial stage saw Union Bank offload 90 per cent of its shareholding to a new owner, Titan Trust.
Fidelity Bank will be acquiring Union Bank UK 100 per cent if the deal goes through, according to a binding agreement between the two, published by the Nigerian Exchange.
In a corporate filing at the Nigerian Exchange Ltd. (NGX)on Tuesday, the bank said the Central Bank of Nigeria (CBN) had issued ‘No Objection’ to its proposed acquisition of the bank, which commenced London operations in 1983.
The notice signed by Fidelity Bank’s Company Secretary, Ezinwa Unuigboje, said the transaction was still subject to the approval of the Prudential Regulatory Authority of the United Kingdom.
The bank said the acquisition was part of its expansion drive to expand and be able it to deliver it services to in such that it would exceed the needs of its growing clients.
It noted: “Union Bank UK commences operations from the heart of the city of London in 1983 to provide competitive banking services including personal banking, trades finance, treasury management and structured trade and community finance which offers to individual and corporate clients.”
Commenting on the agreement, Mrs Nneka Onyeali-Ikpe, the Managing Director/Chief Executive Officer, Fidelity Bank said, “This transaction aligns with our strategic plan of expanding our services touchpoints beyond the Nigerian market and providing straight-through services that meet and exceed the needs of our growing clients.
“The diverse bouquet and business model of union Bank UK offer a compelling synergy and we hope to build on the existing capacity to create a scalable and more sustaining service franchise that will support the wider ecosystem of our trade businesses and diaspora banking services. (NAN)