The Bank of Bahrain and Kuwait’s acquisition of Ithmaar has taken a step forward. BBK said in a bourse filing on Tuesday (Oct 13) that it is in the process of appointing a financial advisor.

The two parties signed a memorandum of understanding on Sep 14 on the potential acquisition by BBK of Ithmaar’s Bahrain operations and specific assets of its subsidiary IB Capital.

If the deal goes through, it will expand BBK’s operations in Bahrain and add a turnkey, full-service Islamic banking solution.

When implemented, BBK’s already large operations in Bahrain will be significantly expanded and a full-service Islamic banking solution will be added while also strengthening the already Ithmaar Bank brand and positioning it to better utilize opportunities for growth, a statement on Dubai Financial Market.

The Gulf Cooperation Council (GCC) countries are seeing a consolidation of their banking sectors. The latest merger was announced on Sunday by Saudi Arabia’s National Commercial Bank and Samba Financial Group that will create an entity of $223 billion in assets.

Source Salaam Gateway