British Indian entrepreneur Sanjeev Gupta today strike a deal with Nigeria's Diamond Bank Plc to acquire its UK-regulated banking subsidiary, Diamond Bank (UK) Plc.
The new bank, which, upon change of control, is intended to be renamed British Commonwealth Trade Bank (BCTB) to address gaps for trade in developing economies, particularly within the Commonwealth.
"The acquisition of BCTB, with its particular global networks, breadth of experience and specialist expertise in developing economies, will enable us to focus on a very different market gap; providing tailor-made financial solutions that enable UK businesses to access specific fast-growing markets, especially within the Commonwealth," Gupta said.
"Post Brexit, there will be a heightened need to provide competitive financing to British companies in the commodities and industrial sectors as they seek to grow in new markets globally. BCTB will aim to be a bridge' between borrowers and lenders for trade with these markets," he noted.
The tycoon, who leads the GFG Alliance group of companies, announced today that a subsidiary of his family's Wyelands Trust has signed an agreement to acquire Diamond Bank UK, subject to approval from the UK's Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
The Central Bank of Nigeria has already approved the transaction.
"GFG's acquisition of Diamond Bank UK will go a long way in helping UK businesses access opportunities in some of the world's largest and fastest-growing markets. This includes the Commonwealth with a third of the world's population where the bank has a strong presence," UK Secretary of State for International Trade, Liam Fox said.
The proposed acquisition is part of the UK-based businessman's strategy to expand the financial services activities of GFG Alliance, alongside its other business pillars of metals, industrials, power generation, infrastructure and property.
The 47-year-old entrepreneur said: "GFG companies have a long history in trade with the Commonwealth and we hope to use both what we have learned and our worldwide contacts to help design a British bank focused on helping UK companies to access exciting new opportunities.
"Britain is a nation of traders, and, with our government's new focus on international trade, we hope to play a key role in connecting UK businesses to customers and opportunities across the world, especially in the developing Commonwealth markets, where Britain has a long and rich history."
Like Wyelands Bank, the new BCTB will be separately capitalised and independently governed and managed.
Uzoma Dozie, CEO of Diamond Bank Plc, said: We feel the proposed sale of our UK subsidiary, DBUK, to the GFG Alliance will provide our UK clients, employees and stakeholders with a new shareholder committed to developing its activities and business.
"Our particular attraction is the experience the GFG Alliance has in managing regulated businesses, as well as knowledge of Africa, which forms a key competency of DBUK.
GFG has also been in the news for its series of acquisitions in the steel industry around the world.
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