The Central Bank of Nigeria (CBN) has given a nod to Fidelity Bank Plc in its bid to acquire 100 percent equity stake in Union Bank UK Plc.

In a corporate filing at the Nigerian Exchange Ltd. (NGX) on Tuesday, August 30 2022 the bank said the Central Bank of Nigeria (CBN) had issued ‘No Objection’ to its proposed acquisition of the bank, which commenced London operations in 1983.

The transaction is however still subject to the approval of the UK’s Prudential Regulatory Authority (PRA).

Managing Director and Chief Executive Officer, Fidelity Bank, Nneka Onyeali-lkpe, said the acquisition, which gives her firm 100% equity stake, will increase the expansion of her company’s operation in UK.

“This transaction aligns with our strategic plan of expanding our service touchpoints beyond the Nigerian market and providing straight-through services that meet and exceed the needs of our growing clients.” Onyeali-lkpe said.

She further stated that, “The diverse service bouquet and business model of Union Bank UK offered a compelling synergy, and we hope to build on the existing capacity to create a scalable and more sustaining service franchise that will support the wider ecosystem of our trade businesses and diaspora banking services.”

Recall that the owners of Union Bank had also sold the Nigerian branches to Titan Trust Bank in June 2022. Titan Trust Bank acquired 93.41 percent stake in Union Bank Nigerian.

The acquisition will enable Fidelity Bank improve its trade businesses and diaspora banking services between the African and European continents, as well as increase its clients list.