Gupta banks on Nigeria deal for Brexit trade ties

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.”