Reports Suggest Zenith Bank May Have Obtained Green Light to Acquire Union Bank

Nigeria's largest bank by profits, Zenith Bank Plc may have gotten the green light to go ahead and merge with or acquire Union Bank, according to reports by Nairametrics and other sources.

According to Nairametrics, talks are currently ongoing between the two banks and a tentative arrangement may have been reached to commence due diligence.

Zenith Bank which is also Nigeria's second largest bank by total assets could increase its size significantly further with a potential acquisition or merger of this magnitude.

It is not immediately clear why both banks will be considering a merger, however, Union Bank owners, Atlas Mara, with a 49% stake has been under pressure to exit their African holdings.

Last year (February), Atlas Mara co-founder Bob Diamond announced he was resigning his post as Chairman of the company. The company said it was looking at selling off banking assets in countries where it was not the dominant player.

Similarly, Nigeria's oldest Bank, First Bank Limited is also rumored to be in serious talks to acquire Polaris Bank and Heritage Bank also.

See the full report by Nairametrics here.