Fidelity Bank Plc has made preparations to purchase Union Bank UK Plc in order to accelerate its expansion effort.
The bank said it has entered into a deal to acquire a 100% equity position in Union Bank UK in a regulatory document posted on the Nigeria Exchange (NGX) yesterday.
In a statement, Fidelity Bank stated that the Central Bank of Nigeria (CBN) had granted a letter of “No Objection” on the transaction, and that the agreement was still awaiting regulatory approval from the Prudential Regulatory Authority of the United Kingdom (PRA).
Nneka Onyeali-Ikpe, Managing Director/Chief Executive Officer of Fidelity Bank Plc, stated that the deal fits with the bank’s strategic plan to increase its service touch points outside of the Nigerian market and offer straight-through services that satisfy and even go above and beyond the needs of its expanding clientele.
The proposed acquisition “signals yet another milestone in the bank’s expanding profile as a prominent African bank” and “marks Fidelity Bank’s first entrance into the international market.”
“We hope to build on the existing capacity to create a scalable and more sustainable service franchise that will support the wider ecosystem of our trade businesses and diaspora banking services,” she continued. “The diverse service bouquet and business model of Union Bank UK offered a compelling synergy.”