NBAD, FGB boards approve merger

The boards of directors at First Gulf Bank (FGB) and the National Bank of Abu Dhabi (NBAD) have approved the merger of both entities in the first quarter of 2017, thereby creating an entity with Dh642 billion in total assets. 
The new entity, which will retain the brand name of the National Bank of Abu Dhabi, will be the largest bank in the Middle East and North Africa by assets, according to Gulf News. 
The merger will be executed through a share swap, with FGB shareholders receiving 1.254 NBAD shares for each FGB share they hold. 
Both banks will continue to operate independently until the merger becomes effective in Q1 2017, and the on the date of the merger, FGB’s share will be delisted from the Abu Dhabi Securities Exchange. 
Following the issue of the new NBAD shares, FGB shareholders will own approximately 52 per cent of the combined bank and NBAD shareholders will own approximately 48 percent. The Government of Abu Dhabi and related entities will own approximately 37 per cent.

Source: QNA