05 May

Merger Talks In GCC Financial Industry Heat Up

More than twenty Gulf financial institutions with total assets exceeding $1 trillion are in merger talks, part of an unprecedented wave of consolidation in the region’s financial industry. Here’s an overview:

Merger Talks In GCC Financial Industry Heat Up

Abu Dhabi Islamic Bank and First Abu Dhabi Bank

Talks are said to be underway in Abu Dhabi for a possible tie-up between Abu Dhabi Islamic Bank PJSC with First Abu Dhabi Bank PJSC, a merger that would create one of the Middle East’s largest lenders. FAB last month said it “currently has not entered discussions with ADIB to pursue any merger activity,” while ADIB said it’s currently not studying a merger with other lenders Combined assets: About $234 billion Story: Abu Dhabi Said to Weigh Merger to Create Top Mideast Lender

National Commercial Bank and Riyad Bank

Saudi Arabia’s biggest lender at the end of 2018 said it’s starting initial talks with Riyad Bank. This deal would form the Gulf’s third-biggest lender Combined assets: $188 billion Story: JPMorgan Is Said to Be Hired to Advise on Saudi Bank Merger

Emirates NBD and Denizbank

Dubai’s largest bank is buying Turkey’s Denizbank AS for $2.8 billion, a more favorable deal than previously agreed on due to the lira’s slump Combined assets: About $180 billion Story: Dubai Lender May Save Up to $700 Million in Turkey Deal on Lira.

Abu Dhabi Commercial Bank, Union National Bank, and Al Hilal

This three-way merger creates the fifth-biggest lender in the Gulf Combined assets: About $115 billion Story: Abu Dhabi Lenders Set May 1 as Effective Date of Merger NOTE: The emirate already merged two of its biggest banks in 2017 to form First Abu Dhabi Bank

Kuwait Finance House and Ahli United Bank

  • A merger between the Kuwaiti and the Bahraini lenders would form the region’s sixth-biggest bank. KFH in January offered to buy Ahli United Bank in a share-swap deal
  • Combined assets: About $97 billion

Dubai Islamic Bank and Noor Bank

  • The United Arab Emirates’ biggest Islamic lender said in April it’s weighing a possible acquisition of Dubai-based Noor Bank PJSC
  • Combined assets: About $76 billion
  •  

Saudi British Bank and Alawwal Bank

  • Saudi British Bank last year agreed to buy Alawwal, which is 40 percent owned by Royal Bank of Scotland Group Plc. Saudi British Bank, a unit of HSBC Holdings Plc, said in March it expects to complete the transaction in the first half
  • Combined assets: About $68 billion

International Bank of Qatar and Barwa Bank

  • Barwa Bank said last month it completed the merger with International Bank of Qatar. The deal partially salvaged an earlier attempt to create the country’s largest Shariah-compliant bank
  • Combined assets: About $22 billion

Shuaa Capital and Abu Dhabi Financial Group

  • Dubai-based Shuaa Capital PSC last week said a potential combination with its shareholder Abu Dhabi Financial Group is "progressing through final stages."
  • Combined assets: About $20 billion

Alizz Islamic Bank and Oman Arab Bank

  • The Omani lenders in October signed an MoU for a potential merger
  • Combined assets: About $8 billion

Arqaam Capital and The National Investor

  • Dubai-based Arqaam Capital Ltd. and Abu Dhabi’s The National Investor are said to be in early discussions for a possible merger
  • Combined equity value: about $250 million

Originally published on www.bloomberg.com

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