The acquisition, for which the Central Bank of Nigeria has issued a letter of ‘No Objection’, is subject to the approval of the UK’s Prudential Regulatory Authority (PRA), and is a part of Fidelity Bank’s expansion strategy
Fidelity Bank to acquire Union Bank UK. (Credit: Scott Graham on Unsplash)
Nigeria-based commercial banking company Fidelity Bank has signed a binding agreement to acquire Union Bank UK, a wholly owned subsidiary of the Union Bank of Nigeria.
The acquisition is a part of Fidelity Bank’s expansion strategy, and has been approved by the Central Bank of Nigeria with a letter of ‘No Objection’.
The transaction is subject to the approval of the UK’s Prudential Regulatory Authority (PRA).
With the proposed acquisition, the Nigerian bank is enabled to enter the international market and strengthen its position as an African bank.
Fidelity Bank managing director and chief executive officer Nneka Onyeali-Ikpe 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.”
Fidelity Bank is an independent commercial bank in Nigeria, with more than 6.5 million customers across its 250 business offices and digital banking channels.
In 2005, the company acquired FSB International Bank (FSB) and Manny Bank to become the one of the large commercial banks in Nigerian.
Union Bank UK is engaged in providing trade finance, personal banking, business banking, treasury services, commercial lending and private banking services in Nigeria and other West African countries.
In 2020, its parent organisation Union Bank of Nigeria has agreed to divest its 100% equity stake in Union Bank UK (UBUK) to MBU BidCo (MBU).
MBU is an acquisition vehicle owned by MBU Capital, and has been selected as the preferred bidder for the sale after a competitive bid process.