By Staff writer
Merger of the National Bank of Abu Dhabi and First Gulf Bank will become official on April 1
The merger of the National Bank of Abu Dhabi and First Gulf Bank will be official from April 1, with shares in the new company trading from the next day, it was announced on Monday.
The Abu Dhabi Securities Exchange said that it had completed the procedures for the unification of the records of the stakeholders in both banks, state news agency WAM reported.
The indicative market price of the new shares will be calculated based on the last traded price of the shares of both banks in the market before the merger, it added.
The shareholders of the two banks endorsed the merger during the General Assembly, which was held in December.
The total assets of the two banks is estimated at AED665.8 billion ($181 billion) at the end of 2016 while financial statements show combined deposits of AED402.58 billion and combined loans of AED357.2 billion.
The merger will lead to the creation of the largest banking entity in the Middle East and may encourage more mergers in the banking sector in the UAE.
WAM said that according to studies, the merger will contribute to reducing the operating costs of the new entity by AED500 million a year.
Earlier this month, NBAD and FGB were reported to have picked the second level management team for the combined entity to be created through their merger.
In October the two Abu Dhabi lenders said they had appointed the top level management team to run the combined bank.For all the latest banking and finance 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.