Three banks merge to form third largest UAE lender

ABU DHABI: Three banks based in the UAE capital Abu Dhabi Tuesday announced they have agreed to merge to form the Emirates´ third largest lender.

The boards of Abu Dhabi Commercial Bank (ADCB) and Union National Bank have unanimously agreed to merge and then acquire the third lender, Al-Hilal Bank which will continue to operate as an Islamic bank under the new group, a statement said.

The merger is still subject to regulatory and shareholder approvals in the coming weeks, said the statement by the three banks.

The new lender will operate under the ADCB name and will have assets of $114 billion, making it the third largest in UAE after the First Abu Dhabi Bank and Emirates National Bank of Dubai, both of which were the result of mergers.

The oil-rich government of Abu Dhabi through the Abu Dhabi Investment Council will own a 60.2 percent stake in the new bank, the statement said.