National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) have received approval from their boards for their merger that will create the largest bank in the Middle East and North Africa (MENA) with $175bn in assets.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The combined entity will have a market capitalisation of nearly $29.1bn. It will operate in 19 countries, and be well positioned in major financial centres such as Singapore, Hong Kong, Geneva, London and Washington, DC.

The merger will be carried out through a share swap, with shareholders of FGB will receive 1.254 NBAD shares for each share they hold.

Following the issue of the new NBAD shares, shareholders of FGB will hold about 52% of the merged entity, while NBAD shareholders will own about 48%. The government of Abu Dhabi and related entities will hold about 37% stake.

Both the lenders will continue to operate independently till the completion of the merger in the first quarter of 2017. FGB’s shares would be delisted from the Abu Dhabi Securities Exchange following the completion of the deal.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The combined company will retain the NBAD brand. Its board will include four nominated directors of FGB and four nominated directors of NBAD.

"The proposed merger will create a bank with the financial strength, expertise, and global network to support the UAE’s economic ambitions at home and drive the country’s growing international business relationships," the Abu Dhabi-based lenders said in a joint statement.

The deal, which was confirmed last month, is subject to shareholders’ and regulatory approvals.