Abu Dhabi may see merger of 3 banks
Two UAE banks - Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB) - said they are in initial talks for a potential merger. The two banks said in separate statements they have started exploratory talks, but these are at a preliminary stage. Meanwhile, there are also reports that another bank, Al Hilal Bank, is also part of the talks. If the talks lead to a possible merger, it will create an entity with assets worth $110 billion. Abu Dhabi has been seeing consolidation in the banking industry. Earlier, two top banks merged to create First Abu Dhabi Bank, which has total assets of $175 billion. Two large sovereign wealth funds too have merged. ADCB, the second largest bank in Abu Dhabi, and UNB are both majority government owned. However, Islamic bank Al Hilal Bank is fully-owned by the Abu Dhabi government.