CBN, Bank of England take decision on Fidelity Bank, Union Bank UK acquisition deal

The Central Bank of Nigeria (CBN) and the Bank of England have taken a position on the acquisition of Union Bank UK Plc (UBUK) by Fidelity Bank a year after the deal was first publicly announced.

Both financial regulators gave no objection to the deal which will increase the asset value of Fidelity Bank. The approval was announced in a statement by Fidelity Bank on Wednesday.

Upon the approval of both countries’ central banks, Union Bank of Nigeria (UBN) will transfer 100 percent of the assets of its United Kingdom subsidiary to Fidelity Bank, leading to the international expansion of the latter.

Although the value of the deal was not disclosed, Fidelity Bank said it would unlock significant value for the company going forward.

In the statement, Fidelity Bank said: “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 Plc (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 IJBUK 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 the 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.”

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