Mubasher: Barwa Bank and International Bank of Qatar (IBQ) on Tuesday have announced that they have inked a final agreement concerning the merger of the two Qatari lenders.
The consolidation of the two banks will create a leading sharia-compliant financial institution with a solid financial position and robust liquidity. The move will support Qatar’s economic growth and financial development initiatives in line with Qatar National Vision 2030, according to Barwa Bank’s statement.
The two Qatari banks will work on completing necessary steps to consummate the merger, obtain required approvals from the regulator and shareholders prior to the end of 2018.
The total assets of the newly combined entity amount to QAR 80 billion, while the shareholder equity base is over QAR 12 billion, the statement showed.
“This agreement would combine the key strengths of the two banks, in the areas of retail and private banking services, corporate and government institutions, capital markets as well as wealth and asset management,” it highlighted.
The Swiss multinational investment bank Credit Suisse was previously appointed as financial advisor to Barwa Bank, QINVEST named advisor to the Qatar bank's board, and Perella Weinberg as financial advisor to IBQ.
On Monday, sources had told Bloomberg News that both lenders began merger talks and they are expected to reach a final agreement during this week.