Fidelity Bank to acquire Union Bank UK

Fidelity Bank is set to acquire a 100 percent equity stake in Union Bank UK Plc.

The bank in a corporate filing on the Nigerian Exchange Limited (NGX) signed by Ezinwa Unuigboje, the company secretary said it has entered a binding agreement to acquire Union Bank.

Fidelity Bank said the Central Bank of Nigeria (CBN) had issued a “No Objection” letter for the deal, adding that the transaction is still subject to the approval of the Prudential Regulatory Authority (PRA) of the United Kingdom.

Why this matters: Speaking g on the development, the Managing Director and Chief Executive Officer, Fidelity Bank Plc, Nneka Onyeali-Ikpe said the bank seeks to expand its services beyond the Nigerian market.

She said, “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.

“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.”

The Union Bank UK is to be acquired 39 years after it commenced its London operations.

The backstory: Recall that in 2021, Titan Trust Bank ‬Limited (TTB)‭, a subsidiary of TGI Group acquired Union Bank of Nigeria Plc.

On Thursday, June 2, 2022, Union Bank announced that it had completed its core investors’ sale of a majority shareholding to Titan Trust Bank.