Bain & Co. Working as Consultant on Abu Dhabi NBAD-FGB Merger

EghtesadOnline: Bain & Co. has been appointed to advise Abu Dhabi’s two biggest lenders as they merge into a $175 billion regional powerhouse.

News ID: ۷۳۶۵۵۲

04 September 2016

The U.S. consulting company was picked to help with the integration of National Bank of Abu Dhabi PJSC and First Gulf Bank PJSC, an NBAD spokesman confirmed after two people with knowledge of the matter told Bloomberg of the firm’s role. The people asked not to be identified because the information is private. Credit Suisse Group AG had earlier advised NBAD and UBS Group AG was working with First Gulf Bank on the deal’s financial terms, reports Bloomberg.

National Bank of Abu Dhabi and First Gulf Bank said in July that they would merge to create a regional banking heavyweight to help boost lending and secure funding as the region grapples with a more than 50 percent drop in oil prices over the past two years. Abu Dhabi -- holder of about 6 percent of global oil reserves -- is cutting spending and tapping cash reserves to help plug a budget deficit exacerbated by the slump in crude.

Abu Dhabi in June also said it planned to merge its two biggest state-owned investment companies, International Petroleum Investment Co. and Mubadala Development Co. Bain & Co. has been picked to advise on the merger of IPIC and Mubadala, Reuters reported last month.

A spokeswoman for Bain & Co. declined to comment, while a spokeswoman for First Gulf Bank didn’t immediately respond to requests for comment. The merger of National Bank of Abu Dhabi and First Gulf Bank is set to be completed in the first quarter of 2017.