The merger of First Gulf Bank (FGB) and National Bank of Abu Dhabi will create First Abu Dhabi Bank, according to official sources. The new entity has been listed on the bourses, which marked the end of a process that began with the talks between the two Abu Dhabi banks in June 2016. First Abu Dhabi Bank will have assets in excess of Dh670 billion, making it the UAE’s largest bank and the second-largest in the Middle East by assets, behind Qatar’s QNB. Shares in First Abu Dhabi Bank, listed under the NBAD ticker, were traded on the Abu Dhabi stock exchange for the first time on Sunday, ending the day up by 1.5% at Dh10.40. Under the terms of the merger, FGB shareholders received 1.254 NBAD shares for each FGB share held. FGB shares have subsequently been delisted. The change of name came as a surprise to observers, with the newly merged entity having been widely expected to retain the NBAD brand. Observers pointed out that the decision to retain elements of the FGB brand in the new name reflects the make-up of the new bank’s senior management team, with the chief executive and his deputy coming from FGB. Seven of the 12 senior management executives of the newly merged bank come from the FGB side of the business, with only four from NBAD.
