Sohar International eyes merger with HSBC Bank Oman
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Sohar International eyes merger with HSBC Bank Oman

Sohar International eyes merger with HSBC Bank Oman

Sohar International recorded a 41.6 per cent increase in net profit to OMR28.3m for the year ended December 31, 2021

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Sohar International has showed an intent to merge with HSBC Bank Oman.

“The board of directors of Sohar International (SIB) in its meeting held on June 15, 2022, resolved to send a letter of intent to the Board of Directors of HSBC Bank Oman (HSBC Oman) to explore the possibility of a merger between the two entities, in a deal which would involve HSBC Oman shareholders being offered cash and shares – subject to obtaining final approvals from the respective boards, regulators and shareholders,” Sohar International announced in a filing to the Muscat Stock Exchange.

The lender said on Twitter that the board will keep the market updated with any progress on this matter.

Sohar International recorded a 41.6 per cent increase in net profit to OMR28.3m ($73.49) for the year ended December 31, 2021, up from OMR20m ($51.94m) recorded during the previous year.

Meanwhile, the bank registered a 14.5 per cent increase in its total assets as of December 31, 2021 amounting to a total of OMR4.134bn as compared to OMR3.611bn as of December 31, 2020.

Intra-country mergers and acquisitions (M&A) have been tepid in recent times, though cross-border M&A is gaining traction in the region. Last month, Saudi Arabia’s sovereign wealth fund announced that it would take a $185m stake in Capital Bank of Jordan as part of deal to help the lender expand.

Read: Saudi wealth fund to take $185m Jordanian bank stake

Meanwhile, Abu Dhabi-based ADQ said that it is buying into Egypt’s Commercial International Bank to shore up the North African economy.

Read more: Abu Dhabi invests in Egyptian firms to help shore up economy

Locally, Abu Dhabi Commercial Bank officially merged with Union National Bank and the combined entity has acquired Al Hilal Bank in 2019.

Read: Abu Dhabi banks ADCB, UNB and Al Hilal merge to create third largest UAE lender

Last year, Saudi Arabia’s biggest banks National Commercial Bank and Samba Financial Group merged to create the kingdom’s largest lender.

Read: NCB, Samba shareholders approve merger to create Saudi National Bank, kingdom’s biggest lender

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