Abu Dhabi – Mubasher: The potential merger of Abu Dhabi Commercial Bank (ADCB), Union National Bank (UNB), and privately-owned Al Hilal Bank into two lenders may result in slashing around 1000 jobs.

In November, talks among the three banks reached an advanced stage concerning creating two new lenders instead of three with total assets of $115 billion.

The three banks are working on issues such as valuation and conducting due diligence, people familiar with the matter told Bloomberg News.

The merger transaction, that is not yet reached, will create the UAE’s fifth-largest bank.

Abu Dhabi, the UAE’s capital and biggest sheikhdom, has intensified its efforts to create leaner and more competitive financial institutions. 

The Abu Dhabi exchange-listed  ADCB and UNB employ about 7,000 people, while Al Hilal has about 1,500 employees, according to official data.

“The job cuts, however, may weigh on an already-subdued consumer demand in the non-oil economy, which is largely driven by expatriate workers,” the New York-based news agency reported.