By Sam Bridge
Kuwait Finance House chairman says plan to buy Bahrain's Ahli United Bank has received approval from central banks
Kuwait Finance House has confirmed its intention to buy Bahrain’s Ahli United Bank following its ordinary and extraordinary general assembly meeting.
The combined entity will potentially become the Gulf’s sixth-biggest lender with $101 billion in assets.
Kuwait Finance House chairman, Hamad Abdulmohsen Al-Marzouq, said the Central Bank of Kuwait and the Central Bank of Bahrain have agreed to start the process of the acquisition.
"This acquisition represents a powerful engine for growth and prosperity in the future of KFH, providing access to many new markets in Britain, UAE, Oman, Iraq and Egypt and strengthening the position of KFH in its current markets.
"The deal will give the bank an opportunity to access regional markets with a population of over 430 million people... The deal also would turn KFH into a direct investment and banking destination, reducing group costs across its markets, enhancing the efficiency of resources allocation and increasing profitability.”
He confirmed that the acquisition will generate the largest Islamic banking entity in the world in terms of assets, with a value of about $101 billion.
The new entity will be converted into a fully digital bank, Al Marzouq said.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.