ADCB says it is in early merger talks with UNB, Al Hilal

Abu Dhabi Commercial Bank (ADCB) is in early merger talks with Union National Bank (UNB) and Al Hilal Bank, it said in a statement to Abu Dhabi Securities Exchange on Tuesday.

"Both sets of discussions are currently at a very preliminary stage and may not result in a transaction," the statement added.

In a separate bourse filing, UNB said the "discussions are at a very preliminary stage and may not result in a transaction."

The two statements come after Bloomberg reported of the talks which said that a potential merger could create the Gulf's fifth-biggest bank.

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.