Masraf Al Rayan & Alkhalij
Commercial Bank Enter Negotiations for a Potential Merger
30 June 2020
In a joint press release, Masraf Al Rayan
and Alkhalij Commercial Bank ‘Alkhaliji’ announced that they have
entered into preliminary negotiations for a potential merger.
As stated in the press release, the
objective of the prospective merger is to found a larger and stronger
financial institution enjoying a solid financial position and higher
liquidity to support the country’s economic growth and further funding
the various development initiatives in conformity with Qatar Vision
2030.
The proposed merger will be subject to
approvals from Qatar Central Bank, Qatar Financial Markets Authority,
Ministry of Commerce and Industry, the respective regulatory entities
and the shareholders of both banks upon the finalization of a financial
and legal due diligence of the transaction.
It
is worth-mentioning that the new entity will maintain all its dealings
in compliance with the Sharia principles and will result in the
foundation of one of the largest Sharia compliant banks in the State of
Qatar and in the Middle East. The expected total assets of the new bank
will exceed QAR 164 billion (USD 45 billion) while the shareholders’
equity will exceed QAR 19 billion (USD 5.2 billion).
The
merger is anticipated to positively contribute to current economic
development in the State of Qatar through funding of the corporate
businesses and Small to Medium Enterprise ‘SME’. It is also expected to
be a strategic partner of the public sector as well as an added value to
all partners including shareholders, bank clients and the economies the
banks are currently operating in.
The
prospective merger will amalgamate all the key strengths in corporate,
retail, wealth management and private banking segments of both banks in
the new entity.