Bahrain Islamic banks merger completed

The merger of three Bahrain-based Islamic banks has been completed to create a new financial institution with total equity of about $340m, it was announced on Monday.

KFH-Bahrain, which acted as transaction and lead advisor to the deal, said the new entity would also have assets totalling more than $400m spanning the Middle East and North Africa, Europe and Asia.

Capivest, Elaf Bank and Capital Management House were given the green light to merge after the extraordinary general meetings of the three banks approved the deal last year.

The transaction is the first three-way merger to take place in Bahrain.

The merger has now been closed after obtaining the final approval of the Central Bank of Bahrain and the Ministry of Industry and Commerce, a statement said.

KFH-Bahrain added that the deal had created "a robust merged entity that is able to better compete in the dynamic and growing global Islamic banking and investment industry".

The statement added: "With a larger capital base, the newly created institution will be better positioned to participate in larger investments and projects and to quickly and more effectively capitalise on a broader set of available opportunities both across the MENA region and globally."

Abdulhakeem Alkhayyat, managing director and CEO of KFH-Bahrain, said: "We are delighted to announce the legal and financial closing of this historic merger.

"With an enhanced capital base, diverse mix of shareholders, assets and revenues, a new bank emerges with the size, scale and resources to deliver greater investment opportunities and value to both investors and shareholders alike."

"We are confident that the merged shareholder and human resource base provides for the selection of a strong board and a capable management team pooled from within the existing resources of the three banks."