In February, Warba Bank announced that it had signed a share purchase agreement with Ahli United Bank (AUB) and its subsidiary to acquire their collective 75.7 per cent stake in Kuwait & Middle East Financial Investment Company (KMEFIC).
Thursday 09, May 2019 BY KUDAKWASHE MUZORIWA
Kuwait’s Warba Bank said that the Central Bank of Kuwait (CBK) has rejected its proposed acquisition of a controlling stake in KMEFIC.
In a bourse filing, the lender stated that the central bank dismissed Warba Bank proposal to acquire a 75.7 per cent stake in KFMEIC from Ahli United Bank and subsidiaries.
CBK said that Warba Bank acquisition of AUB’s stake in KMEFIC will not have a significant effect on the financial position of the lender.
The purchase agreement came at a time when mergers and acquisitions in the Gulf’s financial sector are rising as lenders attempt to improve their financial standing through consolidation.
In UAE, Abu Dhabi Commercial Bank (ADCB) recently merged with Union National Bank (UNB) and the combined entity acquired Al Hilal Bank, creating a banking group with AED 423 billion in assets and the third-largest financial institution as well as one of the largest retail banks in the UAE.
Additionally, Dubai Islamic Bank (DIB) recently announced that its Board of Directors allowed the bank to explore the possible acquisition of Noor Bank.
Shuaa Capital and Abu Dhabi Financial Group (ADFG) also appointed advisers on a potential merger between the UAE-based investment firms.