Indian industrialist Sanjeev Gupta has completed the acquisition of Diamond Bank UK, now to be known as the Commonwealth Trade Bank.
Diamond Bank UK is the British subsidiary of Diamond Bank of Nigeria. The stated intentions of what is now known as the Commonwealth Trade Bank is “to provide a range of bespoke financial solutions with a vision to reinvigorate Britain’s global trading heritage and expertise with countries like Australia and India.”
Gupta is head of the mutinational GFG Alliance, comprising metals, industrials, energy, finance and property businesses. The acquisition of Diamond Bank UK was first announced in 2018, but has now passed regulatory approval.
The Commonwealth Trade Bank will offer a core range of trade solutions including receivables, inventory and supply chain finance, letters of credit discounting, and trade and documentary services associated with trade finance.
The Change in Control for the Bank follows the granting of approval for the acquisition by the Prudential Regulation Authority. As a regulated entity, the Commonwealth Trade Bank will be owned, governed and operated independently of Mr Gupta’s other businesses.
Gupta said: “The CTB will be a highly valuable partner for Britain’s dynamic and ambitious companies that are looking to export their goods and services to some of the highest growth markets around the world like Australia and India.
“This is an exciting time for British businesses, with many new opportunities opening up in emerging and Commonwealth markets. By helping businesses to capitalise on these opportunities and expand their global footprint, I believe the Commonwealth Trade Bank will play a significant role in expanding trade worldwide.”
Commonwealth Trade Bank’s chief executive, Peter Horton, said: “We’re looking forward to a bright future as a new, independent, entity. We will focus on making it easier for businesses, to trade internationally.”
Gupta also purchased Wyelands Bank in 2016. Last year the bank appointed managing director Ian Flaxman, with focus on expanding Wyelands Bank’s asset-based lending offering.
Since opening its doors on 21 December 2016, Wyelands Bank said its total assets have risen from £24m to over £600m in its first 12 months. Over that time, the bank’s interest-earning asset book grew on average by around £30m per month since April 2017.