National Bank of Bahrain, which has a 29% stake in Bahrain Islamic Bank, has made an offer to buy the rest of the Islamic lender in another sign of consolidation in the Gulf banking market, reported Reuters.
The deal is subject to National Bank of Bahrain, the country’s biggest lender, acquiring a minimum 40.94% of the Islamic lender for either cash 0.117 Bahrain dinars or a share exchange ratio of 0.167 National Bank’s shares per Bahrain Islamic Bank share, the Islamic lender said in a filing to the exchange.
National Bank of Bahrain is the second-biggest shareholder in the Islamic lender alongside the government.
The deal comes among a wave of mergers in the Middle East’s financial sector, as profit margins are challenged by lower government and consumer spending because of weak oil prices.
Full Content: Reuters
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