ABU DHABI - Abu Dhabi Financial Group (ADFG) said Sunday it has completed its merger with Shuaa Capital and increased its authorised capital to 2.54 billion dirhams ($692 million).

The deal is the latest in the ongoing financial sector consolidation in the United Arab Emirates, which has also seen the completion of two large bank mergers since 2017.

The capital increase follows admission of 1.47 billion new shares on the Dubai Financial Market in favour of ADFG's parent company, Abu Dhabi Capital Management LLC, a joint statement from the companies said.

The new Shuaa shares will be subject to a 12-month lock-up period from the date of admission, the statement said.

In June, ADFG and Shuaa agreed on terms of their merger that will create an entity with $12.8 billion in assets under management.

ADFG's shareholders will own 58% of the enlarged entity while Shuaa's existing shareholders will own 42%.

ADFG already owned 48.36% of Dubai-listed Shuaa, according to Refinitiv data. Shares of Shuaa Capital were flat in early trade.

(Reporting By Stanley Carvalho; Editing by Saeed Azhar) ((stanley.carvalho@thomsonreuters.com; + 9712 6444431; Reuters Messaging: stanley.carvalho.thomsonreuters.com@reuters.net))