Abu Dhabi Commercial Bank (ADCB) on Wednesday announced that it has signed an agreement to acquire the retail banking business of The Royal Bank of Scotland (RBS) in the UAE.
The $100m acquisition is subject to UAE Central Bank approval, the bank said in a statement.
This would be the first acquisition of an international bank's retail banking franchise in the UAE by a local bank if approval is given.
ADCB officials said the acquisition would provide "tremendous opportunities", doubling ADCB's credit card business and significantly improving its market share to become one of the top three credit card players in the country.
As at March 31 2010, ADCB had 49 branches, 175 ATMs and over 340,000 retail customers.
The acquisition would further enhance ADCB's franchise by leveraging RBS's established local retail banking presence with an addition of over 250,000 customers, 51 ATMs, three new branches and two customer service centres along with a call centre facility based in Dubai.
ADCB said it would finance the acquisition from internal cash resources.
Arup Mukhopadhyay, head of Consumer Banking at ADCB, said: "The RBS retail business in the UAE is an ideal strategic fit for the consumer banking business of ADCB, which has witnessed dramatic growth over the last five years and remained resilient through the economic downturn.
"This acquisition adds significantly to the two strategic growth engines of ADCB's consumer banking franchise - credit cards and the mass affluent wealth management business - and the combined entity provides a perfect platform for building a consumer banking powerhouse in the UAE."
Ala'a Eraiqat, CEO and a member of the Board of ADCB, added: "This is an historic occasion in the UAE banking industry with a local bank acquiring the business of a multi-national bank for the first time."For all the latest UAE news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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