Nigeria’s Fidelity Bank Plc has entered into an agreement with Union Bank for the acquisition of a 100% equity stake in the bank’s subsidiary–Union Bank UK Plc.
This disclosure, which was signed by Ezinwa Unuigboje, the company’s secretary, and dated August 30, 2022, was made in a document titled: Proposed Acquisition of 100% Equity Stake in Union Bank Uk Plc by Fidelity Bank Plc.
The bank asserted that the transaction is in sync with its expansion strategy as it aims to spread its outlets in catering to the market beyond the Nigerian border as well as its growing client.
Mrs. Nneka Onyeali-Ikpe, the Managing Director/Chief Executive Officer, Fidelity Bank Plc said:
“This transaction aligns with our strategic plan of expanding our service touchpoints beyond the Nigerian market and providing straight-through services that meet and exceed the needs of our growing clients. The diverse bouquet and business model of Union Bank UK offered a compelling strategy, 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 business and diaspora banking services.”
The bank also noted that the transaction is subject to the approval of the UK’s Prudential Regulatory Authority (PRA).
What You Should Know
- Union Bank UK plc (UBUK), a UK incorporated bank, is a wholly-owned subsidiary of the Union Bank of Nigeria.
- The Union Bank UK commenced operation in the heart of the city of London in 1983 to provide competitive banking services including personal banking, trade finance, treasury management, and structured trade and commodity finance which it offers to individual and corporate clients.
- In October 2004, it became an independently incorporated UK bank, after receiving authorization from the UK Financial Conduct Authority.
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