The merger of First Gulf Bank (FGB) and National Bank of Abu Dhabi (NBAD) has closed, creating the second largest bank in the region. Speculation is rife that a flurry of bank mergers will follow.
The $29 billion deal gives the new entity, First Abu Dhabi Bank, a combined asset value of $175 billion and a market capitalisation of $29 billion – second only to Qatar National Bank.
“Execution on this transaction was exceptionally smooth considering the size and complexity. The shareholders were extremely supportive of the banks’ objectives and had a real depth of understanding of the issues,” said Ibrahim Mubaydeen, partner at Allen & Overy in Dubai who advised NBAD. “The transaction will make other players in the market consider their options.”
It now sits among a small number of successful mergers between financial institutions in the United Arab...