Kuwait Finance House has received conditional approval from Kuwait’s central bank for its proposed acquisition of Bahrain’s Ahli United Bank.

The deal depends on a number of requirements to ensure adherence to Islamic Sharia, transparency and protection of free competition, the central bank said in a statement.

Previously, Kuwait Finance House (KFH) CEO Mazin al-Nahedh said on Tuesday he expected to get central bank and regulatory approval within one month for KFH’s merger with Bahrain’s Ahli United Bank.

The boards of Kuwait Finance House and Ahli United Bank in September agreed on a share swap ratio, a crucial step in the former’s bid to take over its smaller Bahraini counterpart and create a combined Islamic banking entity with $96.7 billion (Dh354.7bn) in assets.

The Bahraini entity said its board approved a final exchange ratio between the two lenders of one KFH share for every 2.325581 AUB shares, AUB said in a statement to Boursa Kuwait, where its shares trade

KFH announced its plan to take over the Bahraini lender in January.

Source Reuters