Abu Dhabi's NBAD named safest bank in emerging markets: National Bank of Abu Dhabi tops list compiled by Global Finance; Kuwait's NBK also in top 10
NBAD, FGB in early merger talks
National Bank of Abu Dhabi and First Gulf Bank have held preliminary discussions on a possible merger of the Abu Dhabi-based lenders, two sources with knowledge of the matter said on Thursday.
NBAD, with a market value of about $11.3 billion, is 69 percent owned by sovereign wealth fund Abu Dhabi Investment Council. State-owned investment fund Mubadala Development is the biggest shareholder in FGB, whose market capitalization is $14.4 billion, according to data compiled by Bloomberg.
Following the issue of new NBAD shares, FGB shareholders will own approximately 52 percent of the combined bank, with NBAD shareholders owning approximately 48 percent. The Government of Abu Dhabi and Government-related entities will own approximately 37 percent of the merged entity.
The merger is expected to take effect towards the end of the first quarter of 2017.