According to reports reaching OYOGist.com Union Banks of Nigeria, one of the oldest banks in Nigeria is set to merge or be acquired by one if the new generation banks in Nigeria.
Union bank which has been in operation since 1917 and celebrated its 100 years in 2017 is an household name in the Nigeria banking industry and beyond, although the bank sold it United Kingdom subsidiary in January in a bid to streamline it operational focus on the Nigeria business space.
This is coming few days after it was reported that First bank of Nigeria is also in talk to acquire both Polaris bank and Heritage bank in what could possibly be the largest merger or acquisition in the Nigeria banking industry after the merger between Access bank and Diamond bank which shook the industry.
The Central Bank of Nigeria (CBN) is surely in know of this and might have given the merger or acquisition as the case may be the green light to avoid depositors panic and the possibility of nationalisation of Union bank as in the case with Polaris bank.
Barring any unforeseen circumstances, insider reports states that the deal is likely to pull through as the Nigeria Stock Exchange (NSE) and Central Bank of Nigeria might have instigated the deal.
This acquisition will surely be a juicy offer for Zenith bank considering the several legacy assets and customer base maintained by Union bank for over 100 years of it operation.
Although, no official communication has been released from both banks but it is believed that talk is at an advanced stage and despitors and investors fund is surely secured, the only snag might be that of some staff that may probably lose their jobs as this is certain in every busines environment and it is an optimization strategy for companies.
In days to come, we sure hope that the true nature of the acquisition will be communicated to the general public either from the regulators or the banks.