The UAE’s largest bank, the First Abu Dhabi Bank PJSC (FAB), has stated that is not currently in talks with Abu Dhabi Commercial Bank PJSC (ADCB), a deal which could have potentially created the largest Middle East lenders by assets.
In a separate statement shared with the media, ADCB also denied the report, stating that it was focused on implementing its five-year strategy.
“Abu Dhabi Commercial Bank categorically denies […] a potential merger with First Abu Dhabi Bank (FAB),” the lender stated.
“ADCB is successfully implementing a five-year strategy and has been updating the market through regular disclosures, including the bank’s website, annual report, and quarterly reports. In line with out commitment to best practice governance and transparency, ADCB publishes all material information related to the bank through the Abu Dhabi Securities Exchange in a timely manner,” the statement added.
FAB shares have gained about 20 percent this year, valuing the lender at $67 billion, while ADCB rose 29 percent, taking its market capitalisation to $21 billion. FAB has assets of $272 billion and ADCB at $120 billion, according to Bloomberg.
FAB, which was formed as part of a merger between National Bank of Abu Dhabi and First Gulf Bank in 2016, vies with Qatar National Bank for the status of the biggest lender in the Middle East.
The lender offered to buy a majority stake in EFG-Hermes Holding of Egypt last month, valuing the firm at $1.2 billion. FAB has already expanded into Egypt by buying Bank Audi’s local unit and another takeover would give it a larger presence in the Arab world’s most populous country.
Follow us on
