Abu Dhabi’s NBAD, FGB Approve Plan to Form $175 Billion Bank

National Bank of Abu Dhabi PJSC is merging with rival First Gulf Bank PJSC in a deal that will create a regional powerhouse with $175 billion of assets.

While FGB shareholders will hold 52 percent of the combined entity -- billed as a merger of equals -- the lender will operate under the National Bank of Abu Dhabi name and FGB’s shares will be de-listed, according to a statement on Sunday. NBAD will exchange 1.254 of its own shares for each FGB share, implying a 3.9 percent discount to the June 30 close. The chief executive officers of both banks will continue until the merger takes place, after which FGB managing director Abdulhamid Saeed will take over.