Abu Dhabi three-way merger to create $114 bln bank

Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank have agreed on a three-way merger to create the third-largest bank in the UAE with assets worth $114.36 billion, state news agency WAM reported on Tuesday.

The transaction, which has been recommended unanimously to shareholders by the boards of ADCB and UNB, is subject to regulatory and shareholder approvals to be sought in the coming weeks.

The new banking group will carry the ADCB identity and will continue to benefit from strong institutional backing, through the Government of Abu Dhabi’s majority ownership.  It will become the fifth largest in the Gulf Cooperation Council and is expected to have around one million customers.

Al Hilal Bank will retain its existing name and brand and operate as a separate Islamic banking entity within the group.