Abu Dhabi-Mubasher: First Gulf Bank (FGB) and National Bank of Abu Dhabi (NBAD) announced Sunday the board meetings’ approval for recommending to shareholders a merger of the two Abu Dhabi-listed banks.
A new bank will be created with the financial strength, expertise, and global network to support the UAE’s economic ambitions at home and drive the country’s growing international business relationships, according to a recent statement.
The combined bank will be the largest in the Middle East and North Africa (MENA) region, with AED 642 billion ($175 billion) of assets and a combined market capitalisation of approximately AED 106.9 billion ($29.1 billion), the statement added.
“It will be the leading financial institution in the United Arab Emirates (UAE), with a 26% share of outstanding loans, and will operate an international network of branches and offices spanning 19 countries,” the statement said.
FGB and NBAD will continue to operate independently until the merger becomes effective, which is expected in the first quarter of 2017.
Following the issue of the new NBAD shares, FGB shareholders will own nearly 52% of the combined bank, while NBAD shareholders will own approximately 48%. The Government of Abu Dhabi and related entities will own around 37%.
“On the effective date of the merger, FGB shares will be delisted from the Abu Dhabi Securities Exchange,” according to the statement.
