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3 banks in UAE plan mega merger

There is another mega banks’ merger in Abu Dhabi almost happening. Under a plan for consolidation of the sector in the UAE, – Abu Dhabi Commercial Bank is expected to take over Union National Bank and the 2 will operate under the ADCB brand. The boards of the 2 banks have recommended the merger. Subsequently, ADCB will acquire Al Hilal Bank, which will operate as a separate Islamic banking entity with the group. The deal would consolidate ADCB’s position as the UAE’s third-largest bank and would become the fifth largest in the Gulf region, with $114 billion of assets and around 1 million customers. According to Eissa Al Suwaidi, ADCB chairman and who will become head of the new merged entity, the enlarged ADCB will have the scale and expertise to play a central role in the next stage of the UAE’s economic development. The banks will operate independently until the merger happens, which is expected within the first half of 2019, if agreed by 75% of shareholders represented at general assembly meetings of both ADCB and UNB. The Abu Dhabi government, through Adic, will own 60.2% of the combined bank. Other ADCB shareholders will own 28% and other UNB shareholders 11.8%.The merger of the National Bank of Abu Dhabi and First Gulf Bank created the UAE’s largest bank with $175 billion in assets.

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