In light of recent allegations about a potential ADCB and FAB merger, the former responded, denying the accuracy of the news shared by Alarbiya.net and described them as “unsubstantiated and unfounded news.”
ADCB released a separate media statement commenting on the published article addressing an about-to-happen merger with First Abu Dhabi Bank.
“In response to unsubstantiated and unfounded news published by “Al Arabiya.net” on 8th March 2022, Abu Dhabi Commercial Bank categorically denies the false content of the article about a potential merger with First Abu Dhabi Bank (FAB).”
“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 our 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.”
FAB, the bank once founded as a result of the merger between National Bank of Abu Dhabi and First Gulf Bank in 2016, disowned the claims as well, denying any discussions between FAB and its rival ADCB regarding a merger between the two.
“FAB strongly denies the report issued by Al Arabiya and currently has not entered discussions with ADCB to pursue any merger activity."
What Are the Allegations?
On March 8, Alarabiya.net published exclusive news regarding a potential FAB and ADCB merger. In the article, Al-Arabiya states that Abu Dhabi First Bank and Abu Dhabi Commercial Bank are a few steps away from finalizing a merger deal.
Alarabiya.net claims that the banks were in negotiations for months and that the merger will be announced in the second or third quarter of the fiscal year, depending on the approval of regulators.
Alarabiya.net explains that if the merger went through, it would result in the formation of one of the largest banking entities in the region, with estimated assets of $350 billion.
What Positions Do ADCB and FAB Hold in the Banking Sector?
In an article published about the controversial FAB and ADCB merger, Bloomberg refers to FAB and ADCB as two of the biggest banks in the UAE, explaining that a merger between these banking entities will result in “the largest Middle East lenders by assets."
According to Bloomberg data, FAB had a 20% increase in its shares this year, raising its value to $67 billion. The data also denote a 29% increase for ADCB, leading to a market capitalization of $21 billion.
FAB assets are currently worth $272 billion. ADCB, on the other hand, has an estimated worth of $120 billion.
About Abu Dhabi Commercial Bank
Abu Dhabi Commercial Bank (ADCB) is a leading bank located in the UAE. ADCB was founded in 1985 as a public shareholding company with limited liability.
Abu Dhabi Commercial Bank serves over 1 million customers through its 54 branches and over 425 ATMs in the UAE. The bank offers a large scope of services and products, covering consumer banking, wholesale banking, treasury & investments, and property management.