FBN softens speculation on M&A with Heritage, Polaris

FBN softens speculation on M&A with Heritage, Polaris

FBN softens speculation on M&A with Heritage, Polaris. First Bank of Nigeria (FBN) limited has downplayed the speculation over merger with Heritage  and Polaris Bank Limited

Last week, a business newspaper claimed that it heard from reliable sources that FBN is on table with Heritage and Polaris bank for combination.

Reacting to the news, FBN said it understands that recent events in the industry has thrown up merger and acquisition (M&A) for Banks.

The oldest bank in the financial service space however stated that there will always be speculation of First Bank’s involvement on account of its size, liquidity, systemic importance and historic support in backstopping the industry.

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FBN said: “Inorganic growth remains a strategic consideration for all financial institutions, but from its perspective, will only be considered when it is value accretive to shareholders and other key stakeholders”.

The management however stated that FBN, similar to other Nigerian banks, continues to scan Sub-Saharan Africa in general for potential acquisition.

Analysts believe that the M&A would return FBN brand rank to largest by assets, total deposits and loan book.

However, the lender said it is mindful of its responsibilities as a premium board listed on company and will make appropriate disclosures should it find such values.

In the same manner, Polaris Bank limited also denied involvement in any M&A deal. In text message, Rasheed Bolarinwa, spokesperson for Polaris bank said it is a fake news.

However, Heritage Bank media relations contacts turned down discussion on the subject.

FBN softens speculation on M&A with Heritage, Polaris bank limited