Fidelity Bank Successfully Takes Over Union Bank: CBN and Bank of England's Approval

On Wednesday, Fidelity Bank announced to the public that they had completed the 100% acquisition of Union Bank UK, a subsidiary of Union Bank Plc.

Fidelity Bank, which is known as a tier-2 financial institution in Nigeria, intends to move to the tier-1 category.

It was last year that the lender announced that it was planning to take full control of Union Bank UK as part of its growth strategy.  

This was disclosed in the filing sent to the Nigerian Exchange (NGX) Limited. Fidelity Bank said that it completed the acquisition on August 2, 2022, and it's looking to expand its international portfolio.

The Bank Stated,

• 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 the change of control of UBUK.

Also, Fidelity Bank said that the Central Bank of Nigeria issued a letter of "No Objection" which made it easier for the transaction to be completed successfully.

The company secretary, Ezinwa Unuigboje, said this in the press release.

• 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.

While speaking with Bloomberg, the CEO of Fidelity Bank, Nneka Onyeali-Ikpe, said this.

• The strategy is for us to move our footprint outside Nigeria and compete favourably with our peers. In the next three years, we should be able to be in six countries by doing at least two yearly.

She also noted that the acquisition is in line with the bank's goals of boosting its operations here in Africa - She also revealed that the company was planning to enter five other African countries.

The latest milestone achieved by the bank has been praised on X, formerly known as Twitter, as customers say it’s a welcome development.