First tier Zenith Bank denies any rumours of acquiring Union Bank Plc
17 March 2020 : With the declaration of CBN’s new recapitalisation policy, reports started circulating regarding merger and acquisitions in the Banking sector.
According to a NairaMetrics report released last week “Zenith Bank Plc has reportedly been given the green light to merge or acquire Union Bank Nigeria Plc,”, while Zenith Bank vehemently denies the same.
To respond to the same,Michael Osilama Otu, Zenith Bank secretary quite strongly stated that “We hereby state categorically that Zenith Bank Plc has not made any binding offer to acquire any financial institution.”
CBN’s recapitalisation policy was put in order to help lenders meet customers’ credit needs and contribute to economic growth, as seven commercial banks had failed the regulator’s stress test in funding.
While there are also some reports going around regarding plans of First Bank Plc considering merger and acquisition deals with Heritage Bank and Polaris Bank,formerly Skye Bank. First Bank of Nigeriaquickly reacted, saying it will "only consider inorganic growth when it is value accretive to shareholders and other key stakeholders."
On Monday, Zenith Bank Plc approved a final dividend of N2.50 per share, bringing the total dividend payment for the 2019 financial year to N2.80 per share with a total value of N87.9 billion, the final dividend payout will take place at the bank’s 29th Annual General Meeting in Abuja, the nation’s capital.
Source:https://www.easykobo.com/News/21791...enies-any-rumours-of-acquiring-Union-Bank-Plc
