Bloomberg/Christopher Pike

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Al Hilal Bank cuts 160 jobs ahead of three-way merger

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The bank is expected to merge with the two other Abu Dhabi lenders, which will create the third largest bank in the UAE, in the first half of 2019.

Monday 25, March 2019 BY KUDAKWASHE MUZORIWA

Abu Dhabi’s Al Hilal Bank has laid off 160 people ahead of a three-way merger with Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB), the majority of those were staff outsourced from a Dubai-based company.

The lender laid off staff from retail and sales business as well as a small number from the administration and finance departments.

In the three-way merger, ADCB will issue 0.5966 shares for every UNB share, corresponding to a total of AED 1.64 billion new shares issued to UNB shareholders and valuing UNB at nearly $4 billion, while Al Hilal Bank will operate as a separate Islamic entity within the merged bank.

Analysts said that at least 500 jobs could be cut as part of the merger, the second bank tie-up in Abu Dhabi in recent years and UNB and Al Hilal are expected to feel the bulk of the job cuts, reported Reuters.

 

TAGS : Al Hilal, UNB, ADCB, Abu Dhabi bank merger

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