By Adedapo Adesanya
Fidelity Bank Plc has disclosed that it has entered a binding agreement to acquire a 100 per cent equity stake in the United Kingdom franchise of Union Bank Plc.
The bank announced this in a corporate filing on the Nigerian Exchange (NGX) Limited signed by Mrs Ezinwa Unuigboje, the company secretary, adding the Central Bank of Nigeria (CBN) had issued a No Objection letter for the deal.
It also added that the transaction is still subject to the approval of the Prudential Regulatory Authority (PRA) of the United Kingdom.
The acquisition will give the Nigerian mid-level lender total control of the financial institution and it is expected to boost the numbers of the bank as it journeys to a tier-one category.
Speaking on the development, Mrs Nneka Onyeali-Ikpe, managing director and chief executive officer, Fidelity Bank Plc, said the move was to expand services from the local market and diversify its operations.
“This transaction aligns with our strategic plan of expanding our service touchpoints beyond the Nigerian market and providing straight-through services that meet and exceed the needs of our growing clients,” she said.
“The diverse service bouquet and business model of Union Bank UK offered 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,” she added.
The Union Bank UK commenced London operations in 1983 to provide competitive banking services, including personal banking, trade finance, treasury management, and structured trade and commodity finance which it offers to individual and corporate clients.
Last December, relative underdog Titan Trust Bank Limited (TTB) acquired Union Bank of Nigeria Plc after buying out an 89.39 per cent stake in the 104-year old lender.
The new bank bought the shareholding from Union Global Partners Limited.
Aduragbemi Omiyale