TUG
The United Group
History
The United British Company was established in Culcutta in 1871 to assist the colonists in distress in[ Funia Lan][1] as a result of the 1866-1870 drought. It also aimed to use the Funia Lan area as a base for expansion throughout the South Eastern Sea. Its trading ships arrived in 1873 and the Company established a trading store, a bank, a boat building factory and to the horror of the French residents a whaling factory. The whaling was shortlived as settlers refused to work in the factory, load whale products or even buy them. The local director wisely decided not to pursue whaling, after two years having found that pearl exporting was both more lucrative and acceptable. The United British Company fast became the major exporter of pearls from Funia Lan.
Its other success at this time resulted from the adoption by the British authorities of the United British Bank of Fuñia Lan as their principal bankers. Wisely in view of the stormy relationship between the residents of Fuñia Lan and the authorities, the "British" was dropped from the name in 1876, after the unceremonious departure of the first governor. The Company moved its headquarters from Culcutta to Kings City.
During the partition period (1887 and 1897), the name was altered again becoming simply the United Company with the subsidary: United Bank. With the departure of the British in 1899, the headquarters of the Group moved from kings City to Port Henri. It also established United Building Society, the territories' first housing society.
The United Company became The United Group in 1914. It also moved its headquarters back to Kings City. Shortly after, in 1915, the Anglo-French Commission nationalised the company's ship building business.
The company expanded its retail network as the population grew through the 1920s.It established United Insurance in 1926.
Funia Lan's first supermarket was established in 1939 adopting the US concept. The company steadily transformed its stores to supermarkets making a decision to focus on price competition.
In 1963, United Finance Company was established primarily offering high risk high cost credit.
Failed Merger
In 1977, the United Building Society was sold to [Catriona Insurance Banking Services][2] becoming CIBS United Building Society.
Following this came the most bizarre merger in Funia Lan History. The United Group and Kings City Holdings voted to merge their banking subsidaries: United Bank and Kings City Bank. Kings City Holdings had been adopted when the Building Society holding company absorbed the Driver Group.
The newly formed Bank was called Second National Bank. (There was no longer a National Bank operating but the National Bank name was still registered).
Following this successful merger, the two holding companies merged in 1979 becoming Second National United. United Stores gradually absorbed the Driver Store chain. The insurance arms were joined to become Second National United Insurance. Despite the months of discussions and planning, the merger was a disaster. Culturally, the two groups did not fit together. Revenue and profits dropped and crucial decisions were missed. Angry shareholders demanded redress. The result was a de-merger of the two holding companies.
Crucially, the bank and insurance company were separated from both Holding Companies. Each Holding Company became a 40 per cent shareholder in Second National Bank and Second National United Insurance, with the remainder of each company, being floated on the Funia Lan Stock Exchange. TUG kept Driver Stores which were absorbed into the United Stores. The United Group and Kings City Holdings agreed not to buy shares in the other nor take control of the banking or insurance subsidaries.
Second Bank Act
With the passing of the Second Bank Act, TUG sold a further ten per cent of Second National Bank (which dropped the Second from its name). In 1997, United Finance Company became a registered bank and TUG sold 70 per cent of the bank on the Funia Lan Stock Exchange.
Today
TUG owns:
- 100 per cent of United Stores
- 30 per cent of United Finance Company
- 25 per cent of Catriona Insurance (formed from a merger between CI and SNUI)
- 15 per cent of National Financial Services (the biggest bank in [Funia Lan][3]- formed from the merger of Natcom Financial Services with National Bank of Funia Lan)
