Union Bank of Nigeria Plc is preparing to seek a new core investor following the completion of its long-awaited merger with TitanTrust Bank Limited.
Accoroding to a report by Naijaonpoint, the move is part of a broader effort to reposition the century-old lender after a turbulent two years under the control of the Central Bank of Nigeria (CBN).
The bank confirmed in a statement that it had secured final regulatory approval from the apex bank, officially completing the merger that integrates TitanTrust into Union Bank’s operations.
The merger, which had been in the works since 2022, was delayed by governance and ownership challenges that eventually drew in the CBN.
Union Bank and TitanTrust were both placed under CBN control in 2023 after questions were raised about ownership structures and regulatory compliance.The intervention cleared the path for a regulatory-driven merger, effectively resetting the bank’s shareholder base.
Tropical General Investments (TGI) Group, the original shareholder of TitanTrust Bank, is not part of the newly merged entity following the regulatory takeover.
This marks a major shift in the ownership structure and underscores the CBN’s influence in shaping the outcome of the deal.
The absence of TGI means that Union Bank must now seek a credible core investor to provide long-term stability, strategic direction, and capital support. Insiders note that discussions with potential investors are already underway.
The hunt for a new investor comes against the backdrop of the CBN’s recapitalization directive, which requires banks to shore up their capital bases within 24 months.
The target for the industry is estimated at about N4.1 trillion, and so far, banks have raised around N2.8 trillion, leaving a gap of more than N1.3 trillion with just six months left to the deadline.
Union Bank’s quest for a core investor is therefore not just about replacing old shareholders — it is also about survival and competitiveness in an increasingly consolidated industry.
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