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Fidelity Bank Sets To Acquire Union Bank

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Fidelity Bank Sets To Acquire Union Bank

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Fidelity Bank Plc has intimated the public of its proposed acquisition of Union Bank UK as part of its expansion plans.

In a regulatory filing issued on the Nigeria Exchange (NGX) on Tuesday, 30 August 2022, the bank stated that it has entered into a binding agreement for the acquisition of 100% equity stake in Union Bank United Kingdom Limited, for which the Central Bank of Nigeria has issued a letter of “No Objection”.

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The transaction is however subject to the approval of the United Kingdom’s Prudential Regulatory Authority (PRA).

Managing Director/Chief Executive Officer, Fidelity Bank Plc, Nneka Onyeali-Ikpe stated, “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.”

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The proposed acquisition marks Fidelity Bank’s first foray into the international market and signals yet another milestone in the bank’s increasing profile as a leading African bank.

Renowned ratings agency, Fitch Ratings recently upgraded the bank’s long-term issuer default rating (IDR) from ‘B-’ to ‘B’, reflecting the bank’s increased creditworthiness as well as its National Long-Term Rating to ‘A(nga)’ from ‘BBB+(nga)’.

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Standard and Poor’s, another global ratings agency also upgraded the bank’s national scale ratings to ‘ngBBB/ngA-2′ from ‘ngBBB-/ngA-3’ in recognition of its resilience and performance through the cycle.

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”, explains Onyeali-Ikpe.

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The transaction is subject to the approval of the Prudential Regulatory Authority (PRA) of the United Kingdom.

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.5 million customers serviced across its 250 business offices and digital banking channels.

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