First Abu Dhabi Bank, the UAE's biggest lender, has denied media speculation that it is considering a takeover bid for Standard Chartered, after it revealed last month that it evaluated making an offer but abandoned the move which, if successful, would have made it among the top ten banks globally by market value.
In regulatory statements to the Abu Dhabi Securities Exchange and the Stock Exchange of Hong Kong, FAB said it had noted “recent press speculation in relation to Standard Chartered and reiterates that it is not evaluating a possible offer”.
FAB is in a cooling period and is bound by UK and Hong Kong regulatory restrictions. According to last month's disclosure, it reserves the right to announce an offer or possible offer for Standard Chartered within six months of the previous announcement based on several factors.
These include an agreement of the board of Standard Chartered; if a third party announces a firm intention to make an offer for the lender, if Standard Chartered “announces a Rule 9 waiver proposal for the purposes of the UK Code or a 'whitewash' proposal for the purposes of the HK Code”; and/or if there has been a material change of circumstances (as determined by the Panel on Takeovers and Mergers and the Takeovers Executive of the Securities and Futures Commission of Hong Kong).
FAB said last month that it had “previously been at the very early stages of evaluating a possible offer for Standard Chartered … [and was] no longer doing so”.
The shares of Standard Chartered, which had more than $864 billion of assets at the end of September 2022, gained about 11 per cent at the close of trading on Thursday, driven by media speculation of a renewed takeover bid by FAB.
Standard Chartered's shares are up about 35 per cent over the past year. The bank will release its full year 2022 results on February 16.
Standard Chartered had a market value of about $22 billion as of Friday while FAB's market capitalisation was about $43 billion, with managed assets of more than Dh1.1 trillion ($313 billion) at the end of the third quarter of 2022.
A merger of the two banks would have created the 10th-largest bank globally by market value, alongside the Industrial and Commercial Bank of China, China Construction Bank, China Merchants Bank, JP Morgan Chase, Bank of America, Wells Fargo, HSBC, Citigroup, BNP Paribas and Banco Santander, according to The National's calculations.
In a research note last month, investment bank EFG Hermes said while the deal was “off the table, the takeaway is that FAB is serious about inorganic growth and is willing to flex its muscle if the opportunity arises”.
Standard Chartered, whose key market Asia makes up 68 per cent of its revenue and 58 per cent of its assets, would have complemented FAB’s primarily Mena-focused business, EFG said.
“FAB has delivered sector-leading loan growth in 2022 and has enviable liquidity,” EFG Hermes said.
The bank's management “is prudently building provision buffers to shield against risks from high [interest] rates. It has a better track record relative to the sector in managing asset quality pressure and its balance sheet is more skewed towards low-risk segments”.
With oil prices reaching a 14-year high in March of last year, Gulf lenders flush with cash, have looked beyond their local markets and are expanding their footprint regionally and internationally.
FAB, which was created in 2016 after the merger of National Bank of Abu Dhabi and First Gulf Bank, has expanded beyond the UAE market.
Last year, it completed a merger of Bank Audi Egypt with its Egyptian operations, consolidating its market position in the most populous Arab country.
FAB opened a representative office in Iraq last year and had made a non-binding offer to buy a majority stake in Egypt's largest investment bank EFG Hermes but withdrew its bid due to “ongoing global market uncertainty and volatile macroeconomic conditions” at the time.
Last year, FAB opened its first branch in China, offering wholesale banking services to corporate and financial institution clients in China and the Asia-Pacific Region.
In October, Saudi National Bank, the largest lender in the kingdom, said it was investing up to $1.5 billion in the troubled Credit Suisse, for a stake of up to 9.9 per cent.
In 2019, Emirates NBD, Dubai's largest lender, acquired Turkey's fifth-biggest bank Denizbank for $2.8 billion.
FAB's net profit rose 7 per cent to a record Dh13.4 billion ($3.65 billion) last year on higher interest income and strong performance of its core business as the UAE's economy expanded at the fastest pace in more than a decade.
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
MATCH INFO
Arsenal 1 (Aubameyang 12’) Liverpool 1 (Minamino 73’)
Arsenal win 5-4 on penalties
Man of the Match: Ainsley Maitland-Niles (Arsenal)
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Brief scoreline:
Manchester United 2
Rashford 28', Martial 72'
Watford 1
Doucoure 90'
Company Profile
Name: JustClean
Based: Kuwait with offices in other GCC countries
Launch year: 2016
Number of employees: 130
Sector: online laundry service
Funding: $12.9m from Kuwait-based Faith Capital Holding
The five pillars of Islam
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Naga
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Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
6 UNDERGROUND
Director: Michael Bay
Stars: Ryan Reynolds, Adria Arjona, Dave Franco
2.5 / 5 stars
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
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What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
UAE currency: the story behind the money in your pockets
Fighter profiles
Gabrieli Pessanha (Brazil)
Reigning Abu Dhabi World Pro champion in the 95kg division, virtually unbeatable in her weight class. Known for her pressure game but also dangerous with her back on the mat.
Nathiely de Jesus, 23, (Brazil)
Two-time World Pro champion renowned for her aggressive game. She is tall and most feared by her opponents for both her triangles and arm-bar attacks.
Thamara Ferreira, 24, (Brazil)
Since her brown belt days, Ferreira has been dominating the 70kg, in both the World Pro and the Grand Slams. With a very aggressive game.
Samantha Cook, 32, (Britain)
One of the biggest talents coming out of Europe in recent times. She is known for a highly technical game and bringing her A game to the table as always.
Kendall Reusing, 22, (USA)
Another young gun ready to explode in the big leagues. The Californian resident is a powerhouse in the -95kg division. Her duels with Pessanha have been highlights in the Grand Slams.
Martina Gramenius, 32, (Sweden)
Already a two-time Grand Slam champion in the current season. Gramenius won golds in the 70kg, in both in Moscow and Tokyo, to earn a spot in the inaugural Queen of Mats.
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
Fifa Club World Cup quarter-final
Kashima Antlers 3 (Nagaki 49’, Serginho 69’, Abe 84’)
Guadalajara 2 (Zaldivar 03’, Pulido 90')
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
