Barwa Bank moves closer to First Finance takeover

Qatar's Barwa Bank moved one step closer to taking over rival First Finance on Monday after First Finance said it had initially accepted an offer and would initiate legal steps towards the transaction.

The deal with First Finance, which has a market value of QR1.68m ($461m), is one of several Barwa is weighing up as merger pressure on Gulf financial firms persists in the wake of the financial crisis.

"The board of directors has initially agreed on the said offer and has accordingly directed the executive committee to take the necessary legal steps," First Finance said in a bourse statement.

First Financial and Barwa shares were sharply lower after the announcement, with all 20 stocks on the Qatar index down following a 5.1 percent rise the previous session

Barwa Bank, a unit of Barwa Real Estate Co, said earlier this month it was considering buying financial and investment companies to incorporate into a bank in a bid for market share.

Barwa is an affiliate of the state-owned Qatar Investment Authority's $40bn property wing Qatari Diar. (Reuters)

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