| 17 Jun 2010 |
|
ADCB acquires RBS retail arm
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Thursday, Jun 17, 2010
Gulf News
Abu Dhabi Abu Dhabi Commercial BankAbu Dhabi Commercial Bank
(ADCBADCB) said late yesterday it has signed an agreement with the Royal Bank of Scotland to acquire its retail banking business in the UAE for about $100 million (Dh367 million).
The deal is subject to the UAE Central Bank's approval.
"The total cash consideration is equal to the net asset value of RBS's UAE retail banking business at completion plus $46 million," said ADCBADCB chief executive Ala'a Eraiqat at a news conference here.
"This is a historic occasion in the UAE banking industry with a local bank acquiring the business of a multinational bank for the first time.
"The acquisition is in line with our key strategic objective of strengthening our core business and market position in the UAE.
"I am confident this acquisition will deliver long-term value to all ADCBADCB stakeholders," Eraiqat added.
The bank will fund the acquisition from its internal cash resources.
Eriqat said both parties will sit together to determine the final net asset value of the business segment. Eraiqat didn't particularly say when the reassessment of the net asset value will be finalised.
Shares of ADCBADCB yesterday ended at Dh1.51.
Through the acquisition ADCBADCB will get access to 250,000 RBS retail banking customers in the UAE.
By Himendra Mohan Kumar
© Gulf News 2010. All rights reserved.
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