MANAMA: The wave of M&A activity among Gulf banks has reached Oman. Oman Arab Bank SAOC said that it approached Alizz Islamic Bank SAOG to discuss a “strategic collaboration” that may lead to an eventual merger.
A tie-up, which would be the first bank merger in Oman in years, would create the country’s fifth-largest bank with assets of roughly 2.81 billion rials, according to S&P Global Market Intelligence data.
In 2017, United Arab Emirates-based First Gulf Bank and National Bank of Abu Dhabi merged to create First Abu Dhabi Bank PJSC. Earlier in 2018, Saudi Arabia-based Alawwal Bank and Saudi British Bank reached an initial agreement to merge, while a proposed three-way merger between Qatari lenders Masraf Al Rayan QPSC, Barwa Bank QSC and International Bank of Qatar QSC is awaiting regulatory approval.
Omani lenders Bank Sohar SAOG and Bank Dhofar SAOG considered a possible tie-up back in 2013, but the talks ultimately collapsed in 2016 after both parties were unable to agree on key issues.
