UAE lender UNB ‘hires JPMorgan for merger talks’
Bank’s shares are up about 26% year-to-date on expectations of merger with ADCB
Abu Dhabi, Dubai: Abu Dhabi lender Union National Bank (UNB) has hired JPMorgan to advise on its merger talks with Abu Dhabi Commercial Bank (ADCB), three sources familiar with the move said.
The merger, which will also involve unlisted Al Hilal Bank, was announced by the banks in September and is the latest consolidation among state-owned companies in the United Arab Emirates’ capital.
If it goes ahead, a merger of the trio could create an entity with about $113 billion (Dh415 billion) in assets, according to Refinitiv data, and the UAE’s third-biggest lender after First Abu Dhabi Bank (FAB) and Emirates NBD.
FAB was created by last year’s merger between National Bank of Abu Dhabi and First Gulf Bank.
UNB and JPMorgan declined to comment.
Shares of UNB are up about 26 per cent year-to-date on expectations over the merger. ADCB has also gained 21 per cent.
Last month, UNB reported a 7 per cent rise in third-quarter net profit from a year earlier and also said there was no certainty that the merger negotiations would result in a transaction.