GFG Alliance, led by British businessman Sanjeev Gupta, has completed the acquisition of Diamond Bank UK.
The bank, which was previously the UK subsidiary of Diamond Bank of Nigeria, will be renamed the Commonwealth Trade Bank.
GFG Alliance says in a statement that the new bank will “help UK companies to access exciting new opportunities in a post-Brexit world”, particularly in emerging and Commonwealth markets.
It will offer a range of trade solutions to facilitate business between UK firms and countries such as Australia and India, including receivables, inventory and supply chain finance, letters of credit discounting, and trade and documentary services associated with trade finance.
The acquisition sees GFG Alliance, which also includes metals and industrial business Liberty House and sister energy and resources company SIMEC, further expand its financial services activities.
It follows the group’s acquisition of Tungsten Bank in 2016, which re-launched as Wyelands Bank last year, and the subsequent creation of Wyelands Capital. Since then, the group has made a number of big moves to bolster itself as a financial services provider, including acquiring insurance broker Trans-World Credit Corporation and partnering with Demica, a provider of working capital solutions.
The news of the Diamond Bank UK acquisition first became known by the public a year ago, when Gupta announced that a subsidiary of his family’s Wyelands Trust had reached an agreement with Diamond Bank of Nigeria. The deal had at the time already been approved by the Central Bank of Nigeria.
The Prudential Regulation Authority in the UK has now also granted approval for the acquisition. As a regulated entity, the Commonwealth Trade Bank will be owned, governed and operated independently of Gupta’s other businesses, including Wyelands Bank, which focuses on working capital solutions for both domestic and global industrial companies.
“Utilising its global networks, breadth of experience and specialist expertise in emerging and Commonwealth economies, and adopting latest technological solutions, this bank will aim to become a leader among financial institutions globally that provide international trade finance,” Gupta says.