Fidelity Bank Plc has completed the acquisition of a 100% share in Union Bank Plc UK.
The Times reported that this information was made public in a press release sent to Nigeria Exchange Limited.
The acquisition, according to the bank, is intended to support its “strategic initiatives on international expansion.” A large amount of value would be “unlocked for the Fidelity Bank Group” through the purchase of Union Bank UK, according to the Fidelity Bank Board.
The news release’s quote is as follows: “Further to the press release dated August 2, 2022, in which Fidelity Bank Plc (the Bank) informed the general public of its proposed 100% acquisition of Union Bank UK PIC, the Bank is pleased to announce the transaction’s completion and receipt of the PRA’s approval for the change in control of UBUK.
The purchase of UBUK advances the strategic goals for the global expansion of Fidelity Bank Plc. The transaction had previously received a letter of “No Objection” from the Central Bank of Nigeria.
The Bank Board of Directors is taking steps to facilitate the smooth integration of the operations of both businesses since they are confident that the purchase will provide significant value for the Fidelity Bank Group. After completing the acquisition of Union Bank UK, Fidelity Bank announced that it would expand through acquisition into 5 African nations.
Fidelity Bank CEO Nneka Onyeali-Ikpe spoke with Bloomberg over the phone and stated the following: “The goal of the strategy is to enable us to compete favorably with our counterparts by expanding our footprint outside of Nigeria.
We should be able to visit six nations in the next three years if we go to at least two per year.” Fidelity Bank Plc signed a legally binding contract to buy a 100% equity position in Union Bank UK Plc in August 2022.
The Prudential Regulatory Authority of the United Kingdom had to approve the transaction (which it has since done). According to Fidelity Bank, the development is consistent with its effort to expand outside of the Nigerian market in order to better serve its expanding clientele.
