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Zenith Bank To Acquire Union Bank - Business - Nairaland

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Zenith Bank To Acquire Union Bank by Carlyscales: 11:06pm On Mar 14, 2020
Zenith Bank Plc has reportedly been given the green light to merge or acquire Union Bank Nigeria Plc. Nairametrics got wind of this from a reliable source. We understand talks are currently ongoing between the banks and a tentative arrangement may have been reached to commence due diligence.

Zenith Bank is Nigeria’s largest bank by profits and second by total assets and could increase its size significantly further with a potential acquisition or merger of this magnitude.

Why the merger: It is not immediately clear why both banks will be considering a merger, however, Union Bank owners Atlas Mara with a 49% stake has been under pressure to exit their African holdings.
Last year (February), Atlas Mara co-founder Bob Diamond announced he was resigning his post as Chairman of the company. The company said it was looking at selling off banking assets in countries where it was not the dominant player.

Why Zenith: We believe for Zenith Bank a potential merger could be for two main reasons. Firstly, a merger firmly solidifies Zenith Bank’s position as the largest bank by total assets after falling second to Access Bank with N7.1 trillion. It also gives Zenith Bank control over several juicy assets and right of ways owned by Union Bank from its legacy years.

It could also have been instigated by the CBN. which cannot phantom another nationalization of a bank the size of Union Bank. Sources inform Nairametrics that the apex bank is favourably disposed to this move.

Result sheet: Union Bank Results; In a notification that was sent to the Nigerian Stock Exchange (NSE), the banking group recorded a 10.3% growth in profit. The profit before tax as of December 31, 2019, was N20.35 billion as against the N18.45 billion that was achieved for the corresponding period for 2018.

Zenith Bank, on the other hand, reported a record profit after tax N208 billion out of a gross earning of N662 billion. Zenith Bank’s net assets of N941.8 billion dwarfs Union Bank’s net assets of N252 billion as of 2019.

Union Bank share price closed at N6 with a market cap of N174 billion as on Friday, March 13th. Zenith Bank closed at N11.90 or N373 billion and trading at a price to earnings multiple of 1.79 compared to Union Bank’s 7.28x.

This is a developing story……
https://nairametrics.com/2020/03/14/reports-suggest-zenith-bank-given-green-light-to-acquire-union-bank/

22 Likes 3 Shares

Re: Zenith Bank To Acquire Union Bank by Nobody: 11:07pm On Mar 14, 2020
...and they will relieve more some people of their work; No thanks to the dullard.

25 Likes 2 Shares

Re: Zenith Bank To Acquire Union Bank by densiks: 11:09pm On Mar 14, 2020
I’m not an expert in banking or finance operations but is Emefiele not using his influence to give Zenith some leverage in the banking and financial sector of the economy?

In the absence of the above,I commend their timely commitment to ensure that depositors are protected and the assets of weak banks are proactively protected from collapse.

110 Likes 5 Shares

Re: Zenith Bank To Acquire Union Bank by Citytrend: 11:10pm On Mar 14, 2020
Finally the mighty has fallen

24 Likes 2 Shares

Re: Zenith Bank To Acquire Union Bank by MelesZenawi: 11:11pm On Mar 14, 2020
Long over due.

Remaining Eco bank

179 Likes 4 Shares

Re: Zenith Bank To Acquire Union Bank by Frankitibobo: 11:12pm On Mar 14, 2020
Bank swallowing Bank

107 Likes 2 Shares

Re: Zenith Bank To Acquire Union Bank by SadiqBabaSani: 11:14pm On Mar 14, 2020
Hmmm, Lets see this happen
Re: Zenith Bank To Acquire Union Bank by BlackfireX: 11:18pm On Mar 14, 2020
Shithole banks ...

5 Likes 1 Share

Re: Zenith Bank To Acquire Union Bank by Buharidgeneral: 11:24pm On Mar 14, 2020
Buhari's bank

Hope his money is safe oooo

14 Likes

Re: Zenith Bank To Acquire Union Bank by emeijeh(m): 11:27pm On Mar 14, 2020
Buharidgeneral:
Buhari's bank

Hope his money is safe oooo
His money or your money ?
Why are you asking us?
Don't you know your account officer again?
Amnesia is real grin

67 Likes 2 Shares

Re: Zenith Bank To Acquire Union Bank by GamalNasser: 11:32pm On Mar 14, 2020
Damn I hope this won't affect the MD of union Bank

4 Likes 2 Shares

Re: Zenith Bank To Acquire Union Bank by NaijaMutant(f): 11:35pm On Mar 14, 2020
I've never trusted that Union bank before grin

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Re: Zenith Bank To Acquire Union Bank by Gaddafiyusf(m): 11:38pm On Mar 14, 2020
densiks:
I’m not an expert in banking or finance operations but is Emefiele not using his influence to give Zenith some leverage in the banking and financial sector of the economy?

No It's a win win situation here

4 Likes 1 Share

Re: Zenith Bank To Acquire Union Bank by gloriaunobi(f): 11:46pm On Mar 14, 2020
But I prefer Union than Zenith

59 Likes 5 Shares

Re: Zenith Bank To Acquire Union Bank by abumeinben(m): 11:47pm On Mar 14, 2020
So they're now small, weak, unreliable?

Or the horse don japa?


alizma:

Nothing stands forever. If you know how long union bank has been in the sector, you will give the bank a thumb up.

When a bank was still run by oldies who had phobia for technology when fintech was hitting the sector, what do you expect. About how long they've been in the sector, don't know much about banking but we still have first bank, Wema Bank is still there.


bigiyaro:
if your are not banking with the bank just keep quite, union bank is up to date in fintec

Lol.... It's so childish when an adult goes offensive out of ignorance. No offense.

Kindly read my comment again.

93 Likes 1 Share

Re: Zenith Bank To Acquire Union Bank by yomi007k(m): 12:12am On Mar 15, 2020
gloriaunobi:
But I prefer Union than Zenith

But why?

10 Likes 3 Shares

Re: Zenith Bank To Acquire Union Bank by majamajic(m): 12:17am On Mar 15, 2020
So union bank is gone ?

Unity bank keep surprising me , they look fragile yet floating wella

37 Likes 2 Shares

Re: Zenith Bank To Acquire Union Bank by Susu888(m): 12:43am On Mar 15, 2020
Hmmm everyone is just making moves getting more dough cool

4 Likes 1 Share

Re: Zenith Bank To Acquire Union Bank by punisha: 1:40am On Mar 15, 2020
Didn't know Union bank still existed.
I thought it went into extinction with citizen bank.

8 Likes 1 Share

Re: Zenith Bank To Acquire Union Bank by scribble: 2:21am On Mar 15, 2020
NaijaMutant:
I've never trusted that Union bank before grin

Thieving bank

Very good at squandering the assets of it's dead customers and leaving the families to operate in squalor

419 union bank...I bet they will hand over some nasty legal cases to Zenith as part of the M & A

37 Likes 2 Shares

Re: Zenith Bank To Acquire Union Bank by HigherEd: 2:48am On Mar 15, 2020
NaijaMutant:
I've never trusted that Union bank before grin
No be only you. One of the least innovative banks in NG in my own opinion.

Lalasticlala

7 Likes 2 Shares

Re: Zenith Bank To Acquire Union Bank by rOsy247(f): 4:05am On Mar 15, 2020
So what will happen to the money they deducted from my account to keep till next year January for interest yield according to them? Yeye bank

1 Like

Re: Zenith Bank To Acquire Union Bank by chozzy: 4:19am On Mar 15, 2020
.

Union ... my grandfather's bank



.

8 Likes

Re: Zenith Bank To Acquire Union Bank by Dshocker(m): 5:04am On Mar 15, 2020
Right from ages,union bank has been weak

6 Likes 1 Share

Re: Zenith Bank To Acquire Union Bank by SangoOlukosoOba(m): 5:05am On Mar 15, 2020
This guys are going to win champions league

7 Likes

Re: Zenith Bank To Acquire Union Bank by alizma: 5:06am On Mar 15, 2020
densiks:
I’m not an expert in banking or finance operations but is Emefiele not using his influence to give Zenith some leverage in the banking and financial sector of the economy?
No sir

1 Like

Re: Zenith Bank To Acquire Union Bank by lemon10(m): 5:07am On Mar 15, 2020
What of WEMA bank. They appear weak, but here they are, still standing.

20 Likes

Re: Zenith Bank To Acquire Union Bank by Lexusgs430: 5:07am On Mar 15, 2020
Pickin wan chop hin great grand papa.......... grin

33 Likes 2 Shares

Re: Zenith Bank To Acquire Union Bank by OruExpress: 5:08am On Mar 15, 2020
I wish Nigerians would let the term 'juicy' die lol.
How can you write an article on finance and find a way to use the word 'juicy'

52 Likes

Re: Zenith Bank To Acquire Union Bank by dadebayo1(m): 5:08am On Mar 15, 2020
I knew Union bank is in trouble when i visited a branch and the cashier said no more teller grin just call out account number and deposit amount while she inputs it directly into the system.... Reducing cost of printing grin grin grin and then empty teller chair grin just a matter of time....

69 Likes 1 Share

Re: Zenith Bank To Acquire Union Bank by Thunderblasts(m): 5:09am On Mar 15, 2020
I saw this coming like fours years ago!!!

5 Likes

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