The managements of both Zenith Bank Plc and Union Bank of Nigeria Plc have reacted to the widespread reports that they were having discussions bordering on becoming a single entity.
Zenith Bank on Tuesday released a press statement to the Nigerian Stock Exchange (NSE), claiming it had not made any binding offer to acquire any financial institution.
According to the statement signed by Company Secretary/General Counsel, Mr Michael Osilama Otu, “Zenith Bank Plc notes certain recent internet and social media reports suggesting a proposed acquisition of Union Bank Plc by Zenith Bank Plc.
“We hereby state categorically that Zenith Bank has not made any binding offer to acquire any financial institution.”
On its part, Union Bank, through a statement signed by its Company Secretary, Somuyiwa Sonubi, stated that there was no agreement and binding offer made to its shareholders or its board of directors.
“The attention of Union Bank Plc has been drawn to recent online speculation suggesting an agreement with Zenith Bank Plc to acquire Union Bank.
“Union Bank wishes to state that there is no such agreement and no binding offer has been made by anyone to either its shareholders or the board of directors of Union Bank,” the statement said.
There had been reports that Zenith Bank under the leadership of Mr Jim Ovia would merge with Union Bank, which has Union Global Partners Plc as its majority shareholder, for a chance to expand its lead as the largest Nigerian bank by profit and also increase its assets by pulling current leader, Access Bank, Plc to number two.
This was further escalated following the bank’s Annual General Meeting (AGM) held on Monday when the Chairman dodged the question after he was asked about the possibility of an acquisition.
But with this clarification offered, most onlookers are not satisfied considering the case that happened with the Access Bank and Diamond Bank merger in which both banks denied at first what would eventually happen in March 2019.
