Who's Talking to Whom as Record Merger Wave Shakes Up Gulf Banks

(Bloomberg) -- If you’re struggling to keep up with the pace of bank consolidation in the Gulf, here’s an overview of which lenders are in merger talks and where those conversations are at. (Listed by the size of the combined assets based on the latest filing.)

Abu Dhabi Islamic Bank and First Abu Dhabi Bank

• Talks are said to be underway in Abu Dhabi for a possible tie-up between Abu Dhabi Islamic Bank PJSC with First Abu Dhabi Bank PJSC, a merger that would create one of the Middle East’s largest lenders. FAB last month said it "currently has not entered discussions with ADIB to pursue any merger activity," while ADIB said it’s currently not studying a merger with other lenders
• Combined assets: About $234 billion
• Story: Abu Dhabi Said to Weigh Merger to Create Top Mideast Lender

National Commercial Bank and Riyad Bank

• Saudi Arabia’s biggest lender at the end of 2018 said it’s starting initial talks with Riyad Bank. This deal would form the Gulf’s third-biggest lender
• Combined assets: $188 billion
• Story: JPMorgan Is Said to Be Hired to Advise on Saudi Bank Merger

Emirates NBD and Denizbank

• Dubai’s largest bank is buying Turkey’s Denizbank AS for $2.8 billion, a more favorable deal than previously agreed on due to the lira’s slump
• Combined assets: About $180 billion
• Story: Dubai Lender May Save Up to $700 Million in Turkey Deal on Lira

Abu Dhabi Commercial Bank, Union National Bank and Al Hilal

• This three-way merger creates the fifth-biggest lender in the Gulf
• Combined assets: About $115 billion
• Story: Abu Dhabi Lenders Set May 1 as Effective Date of Merger
• NOTE: The emirate already merged two of its biggest banks in 2017 to form First Abu Dhabi Bank

Kuwait Finance House and Ahli United Bank

• A merger between the Kuwaiti and the Bahraini lenders would form the region’s sixth-biggest bank. KFH in January offered to buy Ahli United Bank in a share-swap deal
• Combined assets: About $97 billion
• Story: Kuwait Finance Offers to Buy Ahli United in Share Swap Deal

Dubai Islamic Bank and Noor Bank

• The United Arab Emirates’ biggest Islamic lender said in April it’s weighing a possible acquisition of Dubai-based Noor Bank PJSC
• Combined assets: About $76 billion
• Story: Dubai’s Biggest Islamic Bank Weighs Acquiring Local Rival

Saudi British Bank and Alawwal Bank

• Saudi British Bank last year agreed to buy Alawwal, which is 40 percent owned by Royal Bank of Scotland Group Plc. Saudi British Bank, a unit of HSBC Holdings Plc, said in March it expects to complete the transaction in the first half
• Combined assets: About $68 billion
• Story: Saudi Bank Merger to Create Kingdom’s Third-Biggest Lender

International Bank of Qatar and Barwa Bank

• Barwa Bank said last month it completed the merger with International Bank of Qatar. The deal partially salvaged an earlier attempt to create the country’s largest Shariah-compliant bank
• Combined assets: About $22 billion
• Story: Qatar Lenders Agree to Merge to Create $22 Billion Islamic Bank

Shuaa Capital and Abu Dhabi Financial Group

• Dubai-based Shuaa Capital PSC in March said it’s reviewing the commercial potential of a merger with Abu Dhabi Financial Group
• Combined assets: About $20 billion
• Story: JPMorgan, UBS Are Said Among Advisers on Shuaa-ADFG Merger Talks

Alizz Islamic Bank and Oman Arab Bank

• The Omani lenders in October signed an MoU for a potential merger
• Combined assets: About $8 billion
• Story: Alizz Islamic Bank, Oman Arab Bank Sign MoU for Potential Merger

--With assistance from Arif Sharif.

To contact the reporters on this story: Abeer Abu Omar in Dubai at aabuomar@bloomberg.net;Archana Narayanan in Dubai at anarayanan16@bloomberg.net

To contact the editors responsible for this story: Claudia Maedler at cmaedler@bloomberg.net, Shaji Mathew

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