Oman Arab Bank (OAB) has finalised an agreement to fully acquire Alizz Islamic Bank (AIB), after two years of negotiations.
Financial terms of the deal have not been made public.
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Under the agreement, AIB will become a wholly-owned Islamic banking subsidiary of OAB and convert into a closed joint-stock company (SAOC).
OAB has agreed to submit an offer to AIB shareholders to acquire all shares.
After this step, OAB’s business arm Al Yusr will be integrated with AIB SAOC, creating a larger licensed Islamic bank.
As a result of this transaction, OAB shares will be listed at the Muscat Securities Market (MSM), converting it into a public joint-stock company.
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By GlobalDataCommenting on the deal, OAB chairman Rashad Zubair said: “We take pride in being part of this first-of-its-kind agreement, which will see the establishment of a robust banking entity.
“We will continue to finance major projects in the public and private sector that will have a positive impact on the Sultanate’s development and will contribute positively in terms of job creation.”
AIB chairman Saleh Araimi added: “Through the transfer of Al Yusr to AIB, the branch network will grow and complement our strong digital platforms as we continue to grow our presence.
“This will, in turn, enable us to better serve our existing customers and attract new customers, thanks to our comprehensive suite of Islamic Banking products and services.”
Upon completion of the merger, OAB will continue to operate its conventional banking business while the Sharia-compliant AIB will continue to offer its Islamic banking products and services.
The completion of the deal is subject to the receipt of regulatory approvals.
