Union Bank of Nigeria has brokered a deal to divest its 100% equity stake in UK subsidiary, Union Bank UK (UBUK), to MBU BidCo.

MBU is an acquisition vehicle owned by MBU Capital. It was named as the preferred bidder following a competitive bid process.

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The sale is part of Union Bank’s strategy to geographically streamlining business operations and focus on growth opportunities in the home market.

Union Bank CEO Emeka Emuwa said: “As the banking landscape shifts towards digital and agency banking to drive financial inclusion, the Nigerian market presents robust long-term opportunities for Union Bank. This divestment allows us channel our focus and capital towards mining those opportunities fully.

“The terms of the sale of UBUK delivers substantial value to our shareholders, while also entrusting its customers and trading partners to a high-quality financial services institution who will work with existing management to deliver a stronger and more profitable entity.”

The acquisition of Union Bank UK is subject to regulatory approvals from the relevant regulatory authorities in Nigeria and the UK.

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MBU Capital founder and CEO Mohammed Iqbal said: “We see a huge opportunity to build on UBUK’s strengths in international markets to create a new-style bank which is focused on the needs of UK and international SMEs and entrepreneurs.

“Many of these customers are seeking a bank which truly understands the needs of entrepreneurial, fast-growing businesses. We believe that our acquisition and vision for UBUK offers the potential for significant growth for the bank. We look forward to working with our new colleagues at UBUK to continue to service the needs of its clients.”

Established in 1917, Union Bank offers retail, commercial and corporate banking services. It has a network of more than 300 sales and service centres across Nigeria.