Fidelity Bank Plc has announced the completion of the acquisition of a 100% stake in Union Bank Plc UK, according to a press release it sent to the Nigeria Exchange Limited (NGX).
The deal follows the bank’s outstanding performance in 2022, which saw its earning assets grow significantly to N2.64 trillion.
Fidelity Bank said that the acquisition is aimed at strengthening its “strategic initiatives on international expansion.”
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“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,” the bank said in the press statement.
Revealing its plans, Fidelity Bank CEO Mrs Nneka Onyeali-Ikpe told Bloomberg that following the completion of the acquisition of Union Bank UK, the bank would expand into 5 African countries via acquisition.
“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,” she said.
The acquisition deal was initiated in August 2022, when Fidelity Bank Plc entered into a binding agreement to acquire a 100% equity stake in Union Bank UK Plc.
The acquisition required approval from the Prudential Regulatory Authority of the United Kingdom. Fidelity Bank stated that this move aligns with its strategy of expanding beyond the Nigerian market, allowing it to better serve its growing client base.
This follows the step of Access Bank Plc, which earlier this year, entered into agreements for the acquisition of Standard Chartered’s shareholding in its subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone, and its consumer, private and business banking business in Tanzania.