Fidelity Bank Plc has announced the completion of the acquisition of a 100% stake in Union Bank Plc UK.
This was disclosed via a press release statement sent to Nigeria Exchange Limited (NGX) and seen by Nairametrics.
The bank noted that the acquisition is aimed at strengthening its “strategic initiatives on international expansion.”
What the bank is saying
The Board at Fidelity Bank says the acquisition of Union Bank UK would “unlock significant value for the Fidelity Bank Group”. Here’s the statement from the press release:
“Further to the press release dated August 2, 2022, wherein Fidelity Bank Plc (the Bank) notified the General Public of its proposed 100% acquisition of Union Bank UK PIC (UBUK), the Bank is pleased to announce the completion of the transaction and receipt of the approval of the Bank of England’s Prudential Regulatory Authority (PRA) for change of control of UBUK.
The acquisition of UBUK is in furtherance of Fidelity Bank Plc’s strategic initiatives on international expansion. The Central Bank of Nigeria had earlier Issued a letter of “No Objection” to the transaction.
The Board of Directors of the Bank is confident that acquisition will unlock significant value for the Fidelity Bank Group and is taking action to ensure the seamless integration of the operations of both entities”
More Expansion
Fidelity Bank had disclosed that following the completion of the acquisition of Union Bank UK, it would expand into 5 African countries via acquisition.
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In a phone interview with Bloomberg, the CEO of Fidelity Bank, Mrs Nneka Onyeali-Ikpe said:
“The strategy is for us to move our footprint outside Nigeria and be able to compete favourably with our peers. In the next three years, we should be able to be in six countries by doing at least two every year.”
Back Story
In August 2022, Fidelity Bank Plc entered into a binding agreement to acquire a 100% equity stake in Union Bank UK Plc.
The acquisition was subject to the approval of the Prudential Regulatory Authority of the United Kingdom (which has now been approved).
Fidelity Bank said the development is in line with its expansion drive beyond the Nigerian market to enable it to deliver to its growing clients.