Bank Audi absorbs private
and investment subsidiaries
Merger eliminates duplication
and reduces operating expenses
Bank Audi said it has decided to merge the local business operations of its fully-owned subsidiaries Audi Private Bank (APB) and Audi Investment Bank (AIB) into its own business.
All the assets, liabilities rights, and commitments of APB and AIB will be transferred to Bank Audi. The total assets of APB stood at $1.43 billion at the end of 2018 while the assets of AIB totaled $307.5 million.
The merger, which will ensure the needed business continuity to APB and AIB customers, will create synergies on the operational front, according to Bank Audi.
“This strategic merger enhances the future competitive positioning of Bank Audi with a significant elimination in duplication and lower operating expenses. Specific synergies were created in this respect, which integrate, among others, the governance and control frameworks of APB and AIB into those of Bank Audi,” the bank said.
The merger has received the approval of the Central Bank.
Bank Audi, whose total assets stood $35.2 billion at the end of September 2020, is also in the process of selling its foreign units. It said last week that it has signed the final agreements to sell its operations in Jordan and Iraq to Jordan-based Capital Bank Group.
First Abu Dhabi Bank is also seeking to acquire the Egyptian business of Bank Audi.
Date Posted: Jan 04, 2021