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Business News of Wednesday, 31 August 2022


Fidelity Bank to acquire Union Bank in an expansion drive

Fidelity bank logo Fidelity bank logo

To boost its expansion exercise, Fidelity Bank Plc has announced plans to acquire Union Bank UK Plc.

Specifically, in a regulatory filing issued on the Nigeria Exchange (NGX), yesterday, the bank said it has entered into an agreement for the acquisition of 100 per cent equity stake in Union Bank UK.

Fidelity Bank, in a statement, explained that the Central Bank of Nigeria (CBN) has issued a letter of ‘No Objection’ on the transaction, adding that the agreement is subject to regulatory approvals of the United Kingdom’s Prudential Regulatory Authority (PRA).

Managing Director/Chief Executive Officer, Fidelity Bank Plc, Nneka Onyeali-Ikpe said the transaction aligns with the bank’s strategic plan of expanding its service touch points beyond the Nigerian market and providing straight-through services that meet and exceed the needs of its growing clients.

“The proposed acquisition marks Fidelity Bank’s first foray into the international market and signals yet another milestone in the bank’s increasing profile as a leading African bank.”

She added: “The diverse service bouquet and business model of Union Bank UK offered a compelling synergy, 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.”