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Business News of Tuesday, 17 March 2020

Source: www.mynigeria.com

Zenith Bank reacts to acquisition rumors, denies merger with Union Bank

Zenith Bank Zenith Bank

Zenith Bank Plc has clarified media reports suggesting that the lender may be seeking to acquire Union Bank Plc.

According to a notice filed by the bank to the Nigeria Stock Exchange, it said it was not considering any merger or acquisition plans.

It also added that it had not made any offer to acquire any financial institution.

"Zenith Bank Plc notes certain recent internet and social media reports suggesting a proposed acquisition of Union Bank Plc by Zenith Bank Plc.

"We hereby state categorically that Zenith Bank Plc has not made any binding offer to acquire any financial institution," the notice by the bank read.

Recall that widespread speculations have been made in the banking sector suggesting First Bank's desire to merge with Heritage and Polaris Bank.

The bank, however, downplayed the rumours, saying it would continue to scan sub-Saharan Africa in general for potential acquisitions.

Nonetheless, Central Bank of Nigeria Governor, Mr. Godwin Emefiele, in June last year during the unveiling of his agenda said that the recapitalisation of banks had become imperative as their current capital could no longer finance large transactions.

He had said that the drop in the value of the naira to the dollar had weakened the capital of banks.

The apex bank boss had recalled that in 2004 when the banks were last asked to recapitalise, the value of a dollar to the naira was about N100.

This, according to him, meant that the N25bn capital base of banks when translated into the dollar was about $250m.