Abu Dhabi's NBAD, FGB in talks to form top Middle East bank

Dubai

NATIONAL Bank of Abu Dhabi PJSC (NBAD) and First Gulf Bank PJSC (FGB) said they're in talks to merge in a deal that would create the largest lender by assets in the Middle East.

A group of senior executives from each of the banks is reviewing the commercial, structural and legal aspects of a potential transaction, according to a filing to the Abu Dhabi stock exchange on Sunday. Bloomberg News was first to report the two lenders were considering a merger on June 16.

A deal would create a lender with assets of about US$170 billion and mark the first major banking merger in the United Arab Emirates (UAE) since National Bank of Dubai and Emirates Bank International combined in 2007 to create Emirates NBD PJSC. The country's fragmented banking industry is ready for consolidation and a deal could prompt further transactions among lenders, according to investment b…