February 9, 2023
Bloomberg recently published an article featuring Mark Williams, Master Lecturer of Finance, discussing Abu Dhabi’s FAB $35 billion offer.
After a move to put takeover plans on hold didn’t halt ambitions in becoming a global financial powerhouse, First Abu Dhabi Bank PJSC (FAB) is pushing ahead with a potential offer for Standard Chartered Plc. FAB – which is worth twice as much as Standard Chartered – is exploring an all-cash bid in the range of $30 billion to $35 billion. FAB’s exploration of such a deal demonstrates the growing ambition of Middle East lenders and the wealthy oil-rich nations that back them. A successful outcome would catapult FAB into an emerging marketing banking giant with more than $1 trillion in assets. It would likely place them into a club of 30 banks that global regulators consider systematically important, marking a turning point in Chief Executive Officer Hana Al Rostamani’s two-year reign. Williams states, “FAB and the royal family are simply responding to global finance trends and the swelling amounts of capital in the Middle East. The state’s goal of acquiring a reputable multinational bank is also linked to a desire to gain greater legitimacy in global financial circles while strengthening control over the storage and movements of funds”.