The Central Bank of Nigeria (CBN) has given preliminary approval to Fidelity Bank Plc in its bid to acquire 100 percent equity stake in Union Bank UK Plc, a spin-off and former subsidiary of Union Bank of Nigeria (UBN) Plc.
Fidelity Bank had entered into a binding agreement to acquire 100 percent in Union Bank UK Plc, a transaction that will make the London-based retail and wholesale banker a subsidiary of a wholly-owned subsidiary of Fidelity Bank.
The transaction is however still subject to the approval of the UK’s Prudential Regulatory Authority (PRA).
In December 2021, Union Bank’s core investors – Union Global Partners Limited and Atlas Mara – had reached a Share Sale and Purchase Agreement (SSPA) with Titan Trust Bank (TTB) for the sale of 89.39 percent of Union Bank’s issued share capital. The agreement came a decade after the initial investment by the core investors in 2012.
Consequently, the transaction also triggered the hive-out of Union Bank UK (UBUK) which was approved by shareholders in an extraordinary general meeting on March 29, 2022. This allowed Union Bank of Nigeria’s transition from an international to a national focus.
Managing Director, Fidelity Bank Plc, Mrs. Nneka Onyeali-Ikpe, said the acquisition aligned with the bank’s strategic plan of expanding its service touchpoints beyond the Nigerian market as well as providing straight-through services that meet and exceed the needs of its growing clients.
“The diverse service bouquet and business model of Union Bank UK offered a compelling strategy 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,” Onyeali-Ikpe said.