UNION Bank of Nigeria Plc and Zenith Bank Plc on Tuesday debunked reports that they are holding towards merger.
The two banks at the floor of the Nigerian Stock Exchange said there no such thing brewing between them.
They both issued a statement to the NSE and general public, stating that their attention has been drawn to recent online speculation suggesting an agreement with Zenith Bank Plc to Acquire Union Bank Plc.
The banks further stated that there is no such agreement and no binding offer has been made by any party to either their shareholders or the Board of Directors.
Speculations were rife over the weekend that Zenith Bank had been given the go-ahead to acquire more than a century old Union Bank Plc. Zenith began operations as a Bank in 1991, less than t30 years ago.
There were earlier speculation last week that Nigeria’s oldest bank, FirstBank, was about to merge or acquire Polaris and Heritage Banks respectively.
But in a statement on Friday, the FBN Holdings Plc Secretary, Seye Kosoko, was quoted as saying that the group “will make appropriate disclosures” should it go for such marriage or total acquisition..
His words; “FirstBank will continue to scan Sub-saharan Africa in general for potential acquisitions. In line with”…the evolution of potential consolidation in the Nigerian banking industry. There will always be speculation on FirstBank’s involvement on account of its size, liquidity, systemic importance and historic support in backstopping the industry. “FBN Holdings Plc is mindful of its responsibilities as a Premium Board listed company and will make appropriate disclosures should it find such value.”
What could have fueled such speculation may not be unconnected to the five-year plan of the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, who said last year that there would be new banking consolidation, adding that the new capital will help lenders meet customers’ credit needs and contribute to economic growth.
