Fakoyejo OlalekanThe Central Bank of Nigeria (CBN) has approved the acquisition of Union Bank’s UK subsidiary by Fidelity Bank, a statement obtained from the Nigerian Exchange Limited (NGX) on Tuesday disclosed.
Fidelity Bank’s Managing Director and Chief Executive Officer, Nneka Onyeali-lkpe, said the acquisition, which gives her firm 100% equity stake, will increase the expansion of her company’s operation in UK.
Recall that the owners of Union Bank had also sold the Nigerian branches to Titan Trust Bank in June 2022. Titan Trust Bank acquired 93.41 percent stake in Union Bank Nigerian.
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Although the deal is yet to receive approval from the Prudential Regulatory Authority (PRA) of the United Kingdom, Onyeali-lkpe said the acquisition will create a scalable and more sustaining service franchise.
It will enable Fidelity Bank improve its trade businesses and diaspora banking services between the African and European continents, as well as increase its clients list.
“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.” Onyeali-lkpe said.
She further stated that, “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.”
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