One of the largest commercial banks in Bahrain, Bank of Bahrain and Kuwait (BBK) has entered into introductory discussions with Ithmaar Holding for a potential acquisition of Ithmaar Bank’s Bahrain operations.
Ithmaar Holding Bank operates one of the largest Islamic retail banking networks in Bahrain through Ithmaar Bank.
The acquisition will also include specific assets of IB Capital, a wholly-owned subsidiary of Ithmaar Holding.
The plans, which are subject to shareholder and regulatory approvals, are still in the preliminary discussions phase and subject to the completion of due diligence by both parties. Details of the plans will be announced in due course once necessary approvals are attained.
“BBK has long played a key leadership role in the Kingdom of Bahrain’s banking and financial services industry. To maintain this leadership role, and as part of its ongoing business expansion strategy, BBK has been exploring opportunities to expand its activities and diversify its offerings, particularly in Sharia-compliant banking businesses. Ithmaar Bank seems a natural fit, and we look forward to exploring this possible acquisition further.”
Once completed, the acquisitions will considerably expand BBK’s already large operations in Bahrain and add a turn-key, full-service Islamic banking solution, while also bolstering the already well-established Ithmaar Bank brand and position it to better capitalize on opportunities for growth.
“Ithmaar Bank, an Islamic retail bank, played a pioneering role in the establishment and subsequent development of Islamic banking in the region. A wholly-owned subsidiary of Ithmaar Holding, Ithmaar Bank is a growing, resilient bank that continues to invest in the future and plays a key role in the community. This transaction is in line with Ithmaar Holding’s strategy of creating value for its shareholders, and we look forward to exploring this possible opportunity further.”