Bahrain's Al Salam Bank says in merger talks

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Bahrain's Al Salam Bank said on Wednesday it was in merger talks with an unnamed regional bank, almost a year after a tie-up with Bahrain Islamic Bank collapsed.

"We confirm the accuracy of the media reports that were published related to a potential merger of the bank with one of the banks in the region and the strategy for that," Al Salam said in a statement to the Bahrain stock exchange.

It provided no other details.

One potential merger prospect is Khaleeji Commercial Bank , after Gulf Finance House, which owns 47 percent of the lender, said last week it was studying tie-up options with other Bahraini banks.

In February, merger talks between Bahrain Islamic Bank and Al Salam Bank to form what would have been the Gulf Arab state's largest Islamic lender collapsed due to disagreement on valuation.

Gulf bank mergers are uncommon because main shareholders, often powerful local families, are reluctant to cede control and can demand exaggerated valuations.

However, Bahrain has seen some merger attempts in recent months as lenders react to the global financial crisis and the end of the real estate boom in the kingdom where many small banks are reliant on fees earned from managing property and land investments.

Earlier this month, Capivest, Elaf Bank and Capital Management House completed their three-way merging, creating a bank with total assets worth over US$400m.

Related:

Market Performance

Al Salam Bank - Bahrain
2.04
0.02 0.99 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Capital plans: how Qatar's banks are shaping up

Capital plans: how Qatar's banks are shaping up

Ahli Bank chief executive Salah Murad says that despite competition...

The spectacular rise and fall of Arabtec

The spectacular rise and fall of Arabtec

The ups and downs of Dubai most heavily traded stock teaches...

1
MidEast investors eye $180bn overseas spending

MidEast investors eye $180bn overseas spending

Arab institutional investors have been buying up swathes of ...

Most Discussed