National Bank of Oman has reportedly offered to purchase fellow domestic lender United Finance, challenging the latter’s potential merger with Bank Nizwa, Reuters has reported.

United Finance, which agreed in principle to merge with Bank Nizwa in February this year, said that the proposal will be considered when its board meets next.

The latest proposed deal with National Bank of Oman would require the approval of its directors, shareholders and the regulators, United Finance added.

According to Thomson Reuters data, National Bank of Oman has a market capitalisation of $1.08bn that makes it the country’s third largest bank by that classification.