Abu Dhabi's Merger Drive May Create Another Mega Bank: Timeline

(Bloomberg) -- Three of Abu Dhabi’s banks are in talks to combine -- a move that would create the fifth-largest lender in the Gulf Cooperation Council with assets of about $110 billion.

Discussions to merge Abu Dhabi Commercial Bank PJSC, Union National Bank PJSC and privately-held Al Hilal Bank are underway but no decision has been made, according to people with knowledge of the matter.

The talks fit into Abu Dhabi’s strategy to consolidate its institutions as the oil-rich emirate seeks to cope with lower crude prices. Following are the key mergers recently undertaken in the largest sheikhdom in the United Arab Emirates.

  • June 2013: Aldar Properties PJSC acquires Sorouh Real Estate Co. to create the second-largest publicly traded developer in the U.A.E. after Dubai-based Emaar Properties PJSC
    • March 2018: Aldar and Emaar partner to develop local and international projects valued at 30 billion dirhams ($8.2 billion)
  • October 2016: Abu Dhabi National Oil Co. starts what eventually will become a significant overhaul to the emirate’s biggest oil company
    • The company, known as Adnoc, combines offshore energy businesses Abu Dhabi Marine Operating Co. and Zakum Development Co.
    • Adnoc also merges three shipping and ports units
      • Abu Dhabi National Tanker Co., Petroleum Services Co. and Abu Dhabi Petroleum Ports Operating Co. operate more than 165 vessels
  • June 2016: First Gulf Bank and National Bank of Abu Dhabi announce plans to merge
    • The new bank, known as First Abu Dhabi Bank or FAB, became the second-largest lender in the Middle East
  • January 2017: Two of the emirate’s sovereign wealth funds, Mubadala Development Co. and International Petroleum Investment Co., combine operations
    • The new entity is called Mubadala Investment Co.
    • March 2018: Abu Dhabi Investment Council becomes part of Mubadala, raising combined assets to $220 billion

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