Fidelity Bank Successfully Acquires Union Bank UK

Fidelity Bank Successfully Acquires Union Bank UK
Fidelity Bank Successfully Acquires Union Bank UK

Fidelity Bank has successfully completed its acquisition of the UK subsidiary of Union Bank, a deal that was initially announced back in August 2022. This strategic move marks a significant milestone for Fidelity Bank as it seeks to join the ranks of Tier 1 banks in Nigeria while expanding its operations beyond its home base. It also signifies the conclusion of Union Bank’s presence in the UK, which had been established since 1983.

This acquisition received regulatory approval from both the Bank of England’s Prudential Regulatory Authority and the Central Bank of Nigeria, which issued a “No Objection” letter last year. Fidelity Bank views this acquisition as a crucial step in its international expansion strategy.

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The bank’s board of directors is highly optimistic that the acquisition of Union Bank UK will unlock substantial value for the Fidelity Bank Group. They are actively working towards a seamless integration of the operations of both entities.

Furthermore, in April, Fidelity Bank announced it had received applications from investors to purchase 3.04 billion of its shares through a private placement, amounting to N14 billion. The bank is also planning to raise additional capital through a public offering and a rights issue. The public offering aims to make 10 billion shares available for sale, while 3.2 billion shares will be offered to existing shareholders through the rights issue. This capital-raising effort is expected to increase the bank’s outstanding shares by 46 percent.

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Fidelity Bank’s financial performance in the first half of the year has been impressive, with its profit more than doubling to N46.7 billion. This growth can be attributed to gross earnings of N337 billion, which is 34.4 percent higher than the corresponding period of the previous year.

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