Abu Dhabi Three-Way Merger to Form $114 Billion U.A.E. Bank - Bloomberg

Abu Dhabi Three-Way Merger to Form $114 Billion U.A.E. Bank - Bloomberg:

Abu Dhabi Commercial Bank PJSC agreed to merge with Union National Bank PJSC and Al Hilal Bank to create the Gulf’s fifth-biggest lender with about $114 billion in assets.

ADCB offered 0.5966 share for every UNB share, according to a statement. The combined entity will buy privately-held Al Hilal Bank for about 1 billion dirhams ($272 million) by issuing a mandatory convertible note. The deal is expected to close in the first half.

The merger "makes a lot of strategic sense," said Richard Segal, a senior analyst at Manulife Asset Management in London. "The first-half closing timetable seems ambitious, unless some of the preliminary work has already been undertaken."