Kuwaiti Lenders Boubyan Bank and Gulf Bank Consider $53 Billion Merger
In a bold move to drive growth and expansion, Kuwaiti lenders Boubyan Bank and Gulf Bank are exploring the possibility of merging to create a powerhouse Islamic bank with a combined $53 billion in assets.
The boards of Boubyan Bank and Gulf Bank have given the green light to the proposal, with both banks informing the Central Bank of Kuwait of their intentions through separate regulatory filings on Wednesday.
To move forward with the merger, Boubyan Bank and Gulf Bank are set to sign a memorandum of understanding and a non-disclosure agreement. This will pave the way for conducting due diligence, valuing assets, and assessing the feasibility of the merger.
However, any potential merger will have to navigate regulatory hurdles, including approval from the central bank, according to the regulatory filings submitted by the two banks.
This proposed merger has the potential to reshape the landscape of Islamic banking in Kuwait and beyond, creating a financial giant with significant influence in the region. Stay tuned as this story develops.