The merger between Emirates Bank International (EBI) and National Bank of Dubai (NBD) will further reinforce Dubai's status as an international financial services centre, a senior official said.

Sheikh Ahmed Bin Saeed Al Maktoum, chairman of the Joint Steering Committee established to oversee the merger, was speaking prior to the banks' Extraordinary General Meetings (EGMs) to approve the merger, scheduled for this week.

The EGMs are not only a crucial step in the formation of the region's biggest bank by assets, but also underline the principles of shareholder rights and transparency that Dubai is founded on, he said.

Ahmed Humaid Al Tayer, chairman of EBI, and Abdullah Mohamed Saleh, chairman of NBD, also highlighted that the EGMs are an important opportunity for the shareholders to vote for the merger.  

In a joint statement, they said: “We are determined to ensure that the shareholders of both banks are given the chance to have a say in the merger between NBD and EBI, and to exercise their rights as owners to vote at the EGM.  The merger is positive for the shareholders, customers and employees of both banks, and we look forward to welcoming shareholders to their respective EGMs this week.” 

The merger will be effected through an offer for the shares of EBI and NBD by Emirates NBD PJSC, a new company licensed by the UAE Central Bank established for the purpose of the merger.  Each EBI share will be exchanged for 1 share in Emirates NBD.  Each NBD share will be exchanged for 0.95 shares in Emirates NBD.

EBI shareholders will vote on the merger at its EGM on September 5 and the NBD EGM will be held on September 6. –TradeArabia News Service