DIAMOND ADDITION WILL HELP GPG ACCESS COMMONWEALTH MARKETS
BRITISH INDIAN entrepreneur Sanjeev Gupta has struck a deal with Nigeria’s Diamond Bank Plc to acquire its UK-regulated banking subsidiary, Diamond Bank (UK) Plc.
The bank, which will be renamed British Commonwealth Trade Bank (BCTB), aims to strengthen trade with 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 added.
The tycoon, who leads the GFG Alliance group of companies, announced last Thursday (26) 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 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,” Britain’s secretary of state for international trade, Liam Fox, said.
The proposed acquisition is part of UK-based Gupta’s strategy to expand the financial services activities of GFG Alliance, alongside its other business pillars of metals, industrials, power generation, infrastructure and property.
Gupta, 47, said: “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.”
He added: “GFG companies have a long history in trade with the Commonwealth and we hope to use what we have learned and our worldwide contacts to help design a British bank focused on helping UK companies to access exciting new opportunities.”
