UK-based financial institution Lloyds Banking Group has revealed plans to sell its UAE business unit. The Abu Dhabi Commercial Bank (ADCB) is considered a potential acquirer.

Lloyds Banking Group, which is 40 percent owned by the UK’s government, has appointed European financial advisory Rothschild as an adviser for this transaction. Lloyds manages almost USD 1.5 billion assets across the Gulf region via its only branch in Dubai.

In June 2010, ADCB has also acquired the retail banking business of The Royal Bank of Scotland (RBS) in the UAE for USD 100 million.

Lloyds Banking Group has been launched in 2009 as a result of the UK’s banking and insurance company HIBOS acquisition of Lloyds TSB. Lloyds TSB Middle East provides banking services which includes personal and private banking, commercial banking, corporate banking as well as offshore banking, treasury services and trade finance services.