Dipo Olowookere
By Dipo Olowookere
The acquisition of the United Kingdom subsidiary of Union Bank of Nigeria Plc, Union Bank UK, by Fidelity Bank Plc, has been completed.
Fidelity Bank is a tier-2 financial institution in Nigeria, intending to move to the tier-1 category.
Over a year ago, the lender announced that it was planning to take total control of Union Bank UK as part of its growth strategy.
The Central Bank of Nigeria (CBN), a body which regulates the country’s banking industry, authorised Fidelity Bank to go ahead with the deal.
In a disclosure on Wednesday, the bank said it has secured the approval of the Bank of England’s Prudential Regulatory Authority (PRA).
The deal is for the 100 per cent control of Union Bank UK, whose parent company has been acquired by Titan Trust Bank Limited. This transaction has raised eyebrows.
In the statement to the investing public on Wednesday through the Nigerian Exchange (NGX) Limited, Fidelity Bank said efforts are being made to seamlessly integrate the operations of Fidelity Bank and Union Bank UK.
It said the acquisition of the offshore lender would “unlock significant value” for the company, noting that the deal aligns with its “strategic initiatives on international expansion.”
“Further to the press release dated August 2, 2022, wherein Fidelity Bank Plc notified the general public of its proposed acquisition of Union Bank UK, the bank is pleased to announce the completion of the transaction and receipt of the approval of the Bank of England’s Prudential Regulatory Authority (PRA) for change of control of UBUK.
“The acquisition of UBUK is in furtherance of Fidelity Bank’s strategic initiatives on international expansion. The CBN had earlier issued a letter of ‘No Objection to the transaction.
“The board of directors of the bank is confident that the acquisition will unlock significant value for the Fidelity Bank Group and is taking action to ensure the seamless integration of the operations of both entities,” the notice signed by the Company Secretary, Ezinwa Unuigboje, said.
