Qatar’s Commercial Bank has offered to acquire an additional 15.2% stake in the National Bank of Oman for $128m (OMR49.4m).

Commercial Bank, which has a capital of $1.1bn (QAR4.04bn), offered to pay $0.5 (OMR0.200) per share in the Omani bank.

The acquisition will increase Commercial Bank’s total stake in the National Bank of Oman to 50.1%.

This makes it the largest shareholder in the Omani lender, followed by the Oman government with a 26.18% stake.

The deal value represents approximately 18% premium to the National Bank of Oman’s closing price on 1 June, Reuters reported. The proposed acquisition increased the bank’s shares by 9.5%.

Commercial Bank was established in 1975 and is currently licensed by the Qatar Central Bank. It has wholesale banking and retail banking divisions.

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Commenting on the latest deal, Commercial Bank said: “Offer completion will result in the formation of a stronger banking institution that the management of CB envisages should become more competitive, both locally and regionally.

“Through offer completion, CB aims to enhance shareholder value and promote the development of NBO.”

Founded in 1973 as a joint-stock company, the National Bank of Oman is the first incorporated bank in the country.

Its operations span retail banking, investment banking, corporate banking, treasury and international banking and Islamic banking.

After the acquisition closes, the Omani bank will become a subsidiary and consolidated into the financial results of Commercial Bank.

Last June, Oman Arab Bank finalised an agreement to fully acquire Alizz Islamic Bank, after two years of negotiations.