Abu Dhabi Commercial Bank, Union National Bank and privately-held Al Hilal Bank have on Tuesday announced a merger.
The merged entity, with total assets of Dh420 billion ($114 billion), will be the third largest bank in the UAE.
It will also become the second largest retail lender in the UAE by assets, with 21 per cent share of retail loans, a statement to Abu Dhabi Securities Exchange said.
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Following completion of the merger of ADCB and UNB and the acquisition of Al Hilal Bank, the Government of Abu Dhabi, through the Abu Dhabi Investment Council, will own 60.2 per cent of the combined bank. Other ADCB shareholders will own 28.0 per cent, and other UNB shareholders will own 11.8 per cent of the combined bank, the statement added.
Eissa Mohamed Al Suwaidi is the chairman designate of the new banking group, and Mohamed Bin Dhaen Al Hamli is the vice-chairman designate. Ala'a Eraiqat is the group CEO designate of the new banking group.
"This is a very exciting transaction that will create a larger, preeminent and resilient banking group. It is a landmark deal for the UAE that will contribute significantly to our national ambitions. A robust and innovative financial sector is crucial to the long-term prosperity of the UAE, as the country forges its transition to a diversified economy, connected to global markets by business and personal networks, trade and investments," said Eissa Mohamed Al Suwaidi.
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