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ADCB concludes acquisition of RBS retail banking business in UAE

Acquisition to double ADCB's credit card business.

Abu Dhabi Commercial Bank (ADCB) has concluded its acquisition of the retail banking and SME business of Royal Bank of Scotland (RBS) in the UAE.

The acquisition agreement was signed by ADCB and RBS in June 2010 and the the Central Bank approval for the same was received about a month back.

The acquisition is expected to double ADCB's credit card business, significantly enhancing its market share.

On 31 March 2010, ADCB had 49 branches, 175 ATMs and over 340,000 retail customers. The acquisition is also is expected to further enhance ADCB's franchise by leveraging RBS's established local retail banking presence and adding over 250,000 customers, 51 ATMs, three new branches and two customer service centres.

The total cash consideration was equal to the net asset value of the UAE RBS retail banking business at completion, plus $46m.

ADCB CEO Ala'a Eraiqat said, the acquisition was undertaken in line with the bank's key strategic objectives of strengthening the bank's core business and market position in the UAE.