The National Bank of Bahrain (NBB) and Bank of Bahrain and Kuwait (BBK) have announced the signing of a memorandum of understanding (MoU) to advance discussions regarding the potential merger under a clear and collaborative framework.
In particular, both parties have agreed on a non-binding basis to commence a reciprocal due diligence process and to negotiate definitive and binding terms of a potential merger. The MoU was signed at the Gulf Gateway Forum in Manama on Sunday,
Should an agreement between the banks be reached and the merger proceed, both banks believe that the proposed merger has the potential to create a stronger, more dynamic and forward-looking entity with enhanced scale, agility, and capabilities, empowering it to support Bahrain’s Vision and contribute meaningfully to the Kingdom’s economic diversification and global competitiveness, said a statement.
The MoU establishes a framework for both banks to explore new strategic opportunities to deliver greater value to customers, shareholders, and the economies in which they operate. Both banks will engage closely with regulators and stakeholders to assess the viability and optimal structure of the potential merger.
Completion of the proposed transaction will be subject to various conditions, including but not limited to, an agreement on the binding terms of a potential merger, the receipt of requisite regulatory approvals and the approval of each of the shareholders of NBB and BBK. Both parties are working collaboratively and constructively to ensure that these conditions are satisfied in due course, said the statement.
Until a potential agreement is reached, NBB and BBK will continue to operate independently, focusing on their respective strategies and maintaining their commitment to delivering outstanding and innovative customer experiences, it said.
“Both institutions reaffirm their commitment to transparency, stakeholder engagement and strong governance, as well as to continue driving growth and value creation across all markets they serve,” it added. – TradeArabia News Service
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