Close Menu
Innovation Village | Technology, Product Reviews, Business
    Facebook X (Twitter) Instagram
    Sunday, May 25
    • About us
      • Authors
    • Contact us
    • Privacy policy
    • Terms of use
    • Advertise
    • Newsletter
    • Post a Job
    • Partners
    Facebook X (Twitter) LinkedIn YouTube WhatsApp
    Innovation Village | Technology, Product Reviews, Business
    • Home
    • Innovation
      • Products
      • Technology
      • Internet of Things
    • Business
      • Agritech
      • Fintech
      • Healthtech
      • Investments
        • Cryptocurrency
      • People
      • Startups
      • Women In Tech
    • Media
      • Entertainment
      • Gaming
    • Reviews
      • Gadgets
      • Apps
      • How To
    • Giveaways
    • Jobs
    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»Acquisitions»CBN approves Providus Bank and Unity Bank merger amidst acquisition speculations

    CBN approves Providus Bank and Unity Bank merger amidst acquisition speculations

    0
    By Tapiwa Matthew Mutisi on August 7, 2024 Acquisitions, Banking, Business, Financial Services, Merger, News, Nigeria

    The Central Bank of Nigeria (CBN) has officially sanctioned the merger of Providus Bank and Unity Bank, a strategic move aimed at fortifying the Nigerian financial landscape. The announcement, made via the platform formerly known as Twitter, comes after Providus Bank’s earlier initiative to secure a significant shareholding in Unity Bank.

    The CBN has expressed its support for the consolidation, stating that it has provided “financial accommodation to facilitate the proposed merger between Unity Bank Plc and Providus Bank Limited.”

    The central bank further clarified that the merger’s success hinges on this financial support, which will play a crucial role in resolving Unity Bank’s comprehensive financial commitments.

    Despite the CBN’s approval indicating a merger, there have been reports suggesting that the ongoing negotiations between the two banks lean more towards an acquisition rather than a merger.

    To illustrate, last year saw Providus Bank, established in 2016, actively pursuing a majority stake in Unity Bank, which is listed on the public stock exchange. This move by Providus Bank could potentially reshape the dynamics of the transaction from a merger to an acquisition.

    According to a report by This Day, Unity Bank has been grappling with meeting its minimum capital requirements since 2017. A source informed the publication that a key aspect of the deal with Providus Bank likely includes a stipulation for the segregation of Unity Bank’s non-performing loans. Unity Bank, which has a significant presence in agricultural financing, has faced financial challenges for an extended period.

    The bank’s financial health has been worrisome, with its 2023 records showing a staggering loss after tax of ₦47.917 billion, a drastic downturn compared to the ₦2.029 billion profit after tax (PAT) it reported in 2022.

    Earlier in April, news surfaced about Providus Bank’s intentions to acquire Unity Bank as part of its strategic expansion efforts. Given these initial discussions centered around an acquisition, Providus Bank is anticipated to emerge as the predominant entity in the merger with Unity Bank.

    Despite these developments, the Central Bank of Nigeria (CBN) has emphasized that no Nigerian bank is currently in a dire situation akin to that of Heritage Bank, which faced liquidation.

    While there may be concerns regarding Unity Bank’s financial stability, it still ranks as the commercial bank with the 10th highest number of branches in Nigeria. The forthcoming merger is expected to shed more light on the bank’s operations and future prospects.

    CBN lifts the ban on new account openings placed on OPay, Moniepoint, Kuda, others

    Related

    Acquisition Africa Banking Business CBN Central Bank of Nigeria financial services Investments merger nigeria Providus Bank Technology Unity Bank
    Share. Facebook Twitter Pinterest LinkedIn Email
    Tapiwa Matthew Mutisi
    • Facebook
    • X (Twitter)
    • LinkedIn

    Tapiwa Matthew Mutisi has been covering blockchain technology, intelligent technologies, cryptocurrency, cybersecurity, telecommunications technology, sustainability, autonomous vehicles, and other topics for Innovation Village since 2017. In the years since, he has published over 4,000 articles — a mix of breaking news, reviews, helpful how-tos, industry analysis, and more. | Open DM on Twitter @TapiwaMutisi

    Related Posts

    Meta’s Llama AI Models Hit 1 Billion Downloads—Here’s Why It Matters

    Google Unveils Veo 3 as a Game Changing AI Model for Realistic Video and Audio Generation

    Grok 3 Lands on Microsoft Azure: A Powerful New AI Model with Enterprise-Grade Muscle

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Copyright ©, 2013-2024 Innovation-Village.com. All Rights Reserved

    Type above and press Enter to search. Press Esc to cancel.