$4.5bn Bahrain Islamic, Al Salam merger off
Manama, February 16, 2012
Bahrain Islamic Bank and Al Salam Bank said on Thursday that merger talks between both lenders to form a banking giant collapsed due to disagreement on pricing.
Both banks had said in July they initiated talks to form the kingdom's largest Islamic lender with assets of 1.7 billion dinars ($4.5 billion).
'Bahrain based Islamic retail banks, Bahrain Islamic Bank and Al Salam Bank mutually agreed to end merger talks after they were unable to each agreement on the exchange ration for the shares,' the banks said in a statement on the Bahrain bourse.
KPMG was advising both entities on exploring merits for the merger, it said. KPMG operates in Bahrain through its member firm KPMG Fakhro.
In March last year, Bahrain Islamic Bank postponed a planned $143 million rights issue, citing market conditions, after Bahrain was hit by political unrest. - Reuters