Al Khaliji, IBQ merger valuation may need 4 weeks

'Proposed merger may be completed later this year or next year' - acting CEO.
Al Khaliji, IBQ merger valuation may need 4 weeks
PLANNED MERGER: Qatar based Al Khaliji Bank may complete its planned merger with the International Bank of Qatar in four weeks. (Getty Images)
By Bloomberg
Wed 28 Jul 2010 10:22 PM

Al Khaliji bank, the second best performer on the Qatar Exchange Banking Sector Index this year, may complete the valuation of a planned merger with International Bank of Qatar within four weeks, Robin McCall, acting chief executive officer, said.

The bank appointed advisors, including Barclays Bank and Simmons & Simmons, on the proposed merger, which may be completed later this year or next year, McCall told reporters today in Doha.

Qatar, a country of 1.6 million people with a gross domestic product of $28.3 million as of March, is home to 11 domestic banks and seven foreign bank branches, according to a 2009 US Department of Commerce report.

McCall said: “We see that this market is extremely over banked."

International Bank of Qatar, a closely held Qatari lender, said in May it was in preliminary discussions with Al Khaliji on a merger.

Al Khaliji’s profit for the first half of the year rose to $30.7 million from $29.6 million a year earlier, the bank said earlier this month.

The bank’s shares, up 13 percent this year, gained 1.3 percent to 15.9 riyals a share on the Qatar Exchange today.

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