Three Abu Dhabi banks said to weigh merger plan

Abu Dhabi is exploring a potential merger between three of its banks to create a lender with about $110 billion of assets, Bloomberg reported, citing informed sources.

Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB), which are both listed locally, are in talks to combine with privately-held Al Hilal Bank, it added.

If successful, a deal could be announced as early as this month with the potential tie-up creating the GCC's fifth-largest bank, the report added.

The market value of ADCB is nearly $10 billion, while UNB's stands at $2.9 billion.

In May, Saudi British Bank (SABB) and Alawwal Bank agreed to merge to create Saudi Arabia’s third-biggest lender with assets of around $77 billion.