The deal between Masraf Al Rayan and Al Khalij Commercial Bank is valued at 8.2 billion riyals ($ 2.2 billion), according to Bloomberg data.
Qatar’s Masraf Al Rayan and Al Khalij Commercial Bank have agreed to join forces in a deal that will create Qatar’s second-largest lender after Qatar National Bank.
The deal will see Al Rayan issue 0.50 of its shares for every Al Khaliji share, which is a 21% premium over Al Khaliji’s closing price from Jan.5, the lenders said Thursday. in a press release.
Data compiled by Bloomberg News puts the transaction at 8.2 billion Qatari riyals ($ 2.2 billion).
The share swap will leave Al Rayan as the remaining legal entity and create one of the largest Islamic law-compliant banks in the state of Qatar and the Middle East, with combined assets of around $ 47 billion. of dollars, according to lenders.
Ali Bin Ahmed Al Kuwari will become chairman of the merged entity and Sheikh Hamad Bin Faisal Bin Thani Al-Thani will become its vice chairman.
Sheikh Hamad Bin Faisal Bin Thani Al-Thani will chair the executive committee of the council.
The news comes the same week that Saudi Arabia and its three Arab allies agreed to restore diplomatic and trade ties with Doha at a Gulf Cooperation Council (GCC) summit in the kingdom on Tuesday.
Saudi Arabia announced restoring ties with Qatar after the three-and-a-half-year dispute saw the kingdom, the United Arab Emirates (UAE), Bahrain and Egypt sever diplomatic and trade ties and impose a blockade land, sea and air. over the Gulf State.
Restoring trade with its neighbors is expected to boost Qatar’s economy, which has also strengthened its trade ties with Turkey, Iran and Pakistan significantly since the imposition of the 2017 blockade.