By Staff writer
National Bank of Abu Dhabi and First Gulf Bank holds talks on merger that would create the largest bank in MENA region
The merger of Abu Dhabi’s NBAD and FGB banks could lead to cost savings of 28 percent, according to a senior banker.
Sanjay Uppal, who helped oversee Emirates NBD’s merger in 2007, said: “When we look at domestic mergers, we typically look at revenue synergies of somewhere in the region of 6 to 12 percent and cost synergies of somewhere in the region of 15-25 to 28 percent.”
Uppal, who was CFO when Emirates Bank and National Bank of Dubai merged to form Emirates NBD in 2007, told Bloomberg TV that NBAD and FGB “should be targeting synergies somewhere close to these benchmarks.”
National Bank of Abu Dhabi and First Gulf Bank held preliminary talks on a merger that would create the largest bank by assets in the Middle East and Africa, it was reported on Thursday.
Union National Bank in Abu Dhabi, could reportedly be an attractive merger target, according to Arqaam Capital. It could be acquired by Abu Dhabi Commercial Bank, which, it said, could offer a substantial premium. Abu Dhabi Islamic Bank was also mentioned as a candidate by EFG-Hermes.