Fidelity Bank has agreed to take over the United Kingdom unit of Nigeria’s second oldest lender, Union Bank.
In a statement by Fidelity Bank on Tuesday, it said that this new development is the latest phase in the train of divestments by Union Bank which began late last year. At that time, Union Bank offloaded 90 percent 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 stated in a regulatory filing published by the Nigerian Exchange.
According to a document signed by Fidelity Bank’s Company Secretary, Ezinwa Unuigboje, the transaction is subject to the approval of the Prudential Regulatory Authority of the United Kingdom.
Fidelity Bank said the development is in line with its expansion drive beyond the Nigerian market to enable it to deliver to its growing client.
The Central Bank has already issued a letter of no objection.
The statement 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, the Managing Director/Chief Executive Officer, Fidelity Bank, Mrs Nneka Onyeali-Ikpe 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”.
A few months ago, Nairametrics reported that Titan Trust Bank completed the acquisition of majority stake in Union Bank Plc.
This is as the bank announced board changes that resulted from the resignation and subsequent retirement of the Directors from the Board of Union Bank and the appointment of new directors.
The Board of Directors of Union Bank also announced the appointment of Mr Mudassir Amray as the Chief Executive Officer and Mr. Farouk Mohammed Gumel as Chairman. Both appointments took effect from 2 June.