Oman’s Bank Nizwa withdraws United Finance merger proposal

Nizwa said in February that it saw the proposed merger as a way to speed up its growth.



Oman’s Bank Nizwa has withdrawn its proposal for a merger with United Finance, Nizwa said on Monday, after United received rival offers and invited all suitors to enter a formal bidding process.

In February, Nizwa approached United Finance with a merger proposal, but other potential bidders subsequently expressed interest. Last week, United invited National Bank of Oman, Nizwa and Al Omaniya Financial Services to participate in a bidding process.

Nizwa, which started operating in January 2013 and is one of two full-fledged Islamic banks in Oman, said in February that it saw the proposed merger as a way to speed up its growth. Its statement on Monday did not explain its decision to drop the idea.