First Gulf Bank (FGB) and the National Bank of Abu Dhabi (NBAD) finally completed their official merger. The long-anticipated merger resulted with a complete rebranding and a new name – First Abu Dhabi Bank. The new name together with newly merged shares represent the final outcome of negotiations between the two Abu Dhabi banks that started last June.
Upon a successful completion of making the First Abu Dhabi Bank, Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of Armed Forces wrote on his Twitter account:
– As the bourse opens today, we celebrate the listing of the UAE’s biggest bank and one of the world’s largest financial institutions. This major step will help us continue our journey towards sustainable development and boost our thriving economy.
With assets of over Dh 670 billion, First Abu Dhabi Bank made it to the first place as the largest UAE bank and the second-largest in the Middle East, right after Qatar National Bank with the US $198 billion. Shares in the rebranded bank were traded for the first time on the Abu Dhabi stock exchange on Sunday, and by the end of the day, they were up by 1.5 percent at Dh 10.40. As agreed in the merger, FGB shareholders got 1.254 NBAD shares for each FGB share held, after which FGB shares were delisted.
Abdulhamid Saeed, First Abu Dhabi Bank’s Group Chief Executive said that this merger represents a new era which will rise on the respective legacies of the two banks. This will get the UAE going towards new milestones and beyond.
– Our exceptionally strong consumer franchise has the scale and expertise to establish First Abu Dhabi Bank as the dominant banking player in the UAE, he added.
A complete rebranding, together with the new name came as a rather big surprise, as it was expected that the newly merged entity will keep the NBAD brand. However, the senior officer explained that prior to the official announcement only a few executives were informed about the total rebranding. The name change has yet to be approved, which will happen during the general assembly meeting. So far the bank didn’t set any official dates on the assembly dates.