NBO’s largest shareholder doesn’t support merger with BankDhofar

Muscat - 

The Commercial Bank of Qatar, the largest shareholder of National Bank of Oman (NBO), said it has advised NBO that Commercial Bank does not support the proposed merger between NBO and BankDhofar.

Commercial Bank holds 34.9 per cent of shares in NBO and is the largest shareholder of NBO, according to NBO’s latest financial statements.

Earlier in July, NBO and BankDhofar commenced discussions to explore the possibility of a merger between the two entities.

‘Following careful consideration, as a major shareholder in NBO, Commercial Bank confirms that they have advised NBO that Commercial Bank does not support the merger’, the Doha-based bank said in a disclosure filed to the Qatar Stock Exchange on Thursday.

NBO in a disclosure to the Muscat Securities Market on Sunday said, ‘NBO notes the announcement by Commercial Bank on the Qatar Stock Exchange on December 20, 2018 in respect of the possible merger with BankDhofar. NBO will consider the interests of all its shareholders in assessing the merits of a merger with BankDhofar’.

NBO said it will update the market with further information in due course.

Earlier in May, Oman Arab Bank (OAB) and Alizz Islamic Bank also agreed to explore the possibility for a strategic collaboration that may lead to an eventual merger of the two entities.

The Capital Market Authority (CMA) in August had requested the banks, which are involved in merger negotiations to make their final decision on proposed mergers within a six-month period after the initial disclosure.

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