Billionaire NRI metals tycoon Sanjeev Gupta has bought his second bank – a UK subsidiary of a Nigerian bank – which he intends to reshape as a post-Brexit bank to support the UK’s trade with Commonwealth markets.
Punjab-born Gupta, who leads the London-headquartered $12 billion GFG Alliance group of companies, has entered into an agreement with Diamond Bank, the fastest growing retail bank in Nigeria, to acquire its UK-regulated banking subsidiary, Diamond Bank (UK). The 47-year-old’s acquisition is part of his latest strategy to expand the financial services activities of the GFG Alliance, alongside its other businesses of metals, industrials, power generation, infrastructure and property.
The entrepreneur, who was born in Ludhiana, acquired his first bank, Wyelands Bank, in 2016 to address specific market gaps in financial servicing for mid-sized UK industrial companies wanting to trade with developed economies worldwide. The new bank, which will be renamed the British Commonwealth Trade Bank (BCTB), will address those same gaps for trade in developing economies but within the Commonwealth.
Gupta, clearly eyeing opportunities from Brexit, 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 the bridge between borrowers and lenders for trade with these markets.”
Diamond Bank (UK), a wholesale bank focused on supporting international trade, has special expertise in developing economies that will enable BCTB to focus on providing tailor-made financial solutions that enable UK businesses to access specific fast-growing markets, especially within the Commonwealth.
“Britain is a nation of traders, and, with the UK 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,” said Gupta.