The deal is aimed at expanding Fidelity Bank’s operations outside Nigeria. Credit: SCY from Pixabay.

Nigerian banking group Fidelity Bank has signed a definitive agreement to buy 100% equity stake in Union Bank UK for an undisclosed sum.

Fidelity Bank stated that it has secured a “No Objection” letter for the deal from the Central Bank of Nigeria.

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The acquisition is part of Fidelity Bank’s efforts to expand operations outside its home market.

Founded in 1983, London-based Union Bank UK is a subsidiary of Union Bank of Nigeria.

The lender, which is regulated by the UK’s Financial Services Authority (FCA), caters to both individual and corporate clients.

It is engaged in offering retail, commercial, trade finance, treasury and correspondent banking services.

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Fidelity Bank managing director and CEO Nneka Onyeali-Ikpe said: “This transaction aligns with our strategic plan of expanding our services touchpoints beyond the Nigerian market and providing straight-through services that meet and exceed the needs of our growing clients.

“The diverse bouquet and business model of union Bank UK offer a compelling synergy and we hope to build on the existing capacity to create a scalable and more sustaining service franchise that will support the wider ecosystem of our trade businesses and diaspora banking services.”

The deal is subject to approval from the Prudential Regulatory Authority of the UK.

In January 2020, Union Bank of Nigeria revealed plans to divest its 100% stake in the UK arm.

At the time, the lender said the deal will streamline business operations and allow it to focus on growing in the home market.