First #AbuDhabi Bank Denies Report of Merger With Smaller Rival ADCB - Bloomberg

First Abu Dhabi Bank Denies Report of Merger With Smaller Rival ADCB - Bloomberg

First Abu Dhabi Bank PJSC said it isn’t currently in talks with smaller rival Abu Dhabi Commercial Bank PJSC, denying a report that claimed the two were close to finalizing a potential merger.

“FAB strongly denies the report issued by Al Arabiya and currently has not entered discussions with ADCB to pursue any merger activity” the lender said on Wednesday. In a separate statement, ADCB also denied the report and said it is focused on implementing a five-year strategy.

FAB and ADCB are two of the biggest banks in the United Arab Emirates and a deal would create the largest Middle East lenders by assets. Abu Dhabi’s government owns a majority stake in both lenders.

“The desire to create larger, more efficient entities persists, even after the latest wave of mergers,” CI Capital analysts including Sara Boutros and Maryam Saleh wrote in a note. “In the case of FAB/ADCB, their common shareholding bode well for a merger.”