Fidelity Bank boosts international portfolio with 100% acquisition of Union Bank UK

Fidelity Bank has strengthened its strategic initiative on international expansion following the completion of a 100 per cent acquisition of Union Bank UK, a subsidiary of Union Bank Plc.

The full-fledged commercial bank said that the buyout is furtherance to its notice of acquisition made on August 2, 2022, which was approved by the Bank of England’s Prudential Regulatory Authority for the change of control of Union Bank UK Plc (UBUK).

It  stated further  that the Central Bank of Nigeria  (CBN) had earlier issued a letter of “No Objection” to the transaction, making it easy for this completion process.

The deal allows Fidelity Bank, which is aspiring to join the league of Tier 1 lenders in Nigeria, to expand beyond its base. However, it  draws the curtain behind Union Bank’s nearly 40-year operations in the UK, dating back to 1983.

Fidelity Bank’s board of directors, in a statement signed by Ezinwa Unuigboje, the company secretary,expressed confidence that the acquisition will unlock significant value for the Fidelity Bank Group, adding that the company is taking action to ensure the seamless integration of the operations of both entities.

Commenting on the development, Nneka Onyeali-Ikpe, the bank CEO, said, “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”.

Onyeali-Ikpe added that the acquisition is part of the bank’s expansion drive on the continent of Africa, especially as they plan to enter five other African countries.