Boubyan has assets of 8.89 billion Kuwaiti dinars ($29 billion)
Top Kuwaiti Islamic Banks Eye Deal to Create $50 Billion Lender
Two of Kuwait’s largest Islamic lenders are considering a merger that would create a regional banking behemoth with more than $50 billion in assets.
Boubyan Bank and Gulf Bank plan to conduct due diligence and valuation studies to consider the feasibility of a combination، according to a statement. Shares in both lenders jumped Wednesday morning in Kuwait.
Boubyan has assets of 8.89 billion Kuwaiti dinars ($29 billion)، while Gulf Bank has 7.43 billion dinars. Their talks come amid a wave of banking consolidation across the Middle East، where lenders have sought to gain more scale to better compete with rivals.
Purchasing stakes
Kuwait Finance House has been exploring the purchase of a significant stake in Saudi Investment Bank، Bloomberg News reported last month. One of the last major deals also involved KFH، which agreed in 2022 to acquire Bahrain’s Ahli United following four years of negotiations.
Meanwhile، National Bank of Bahrain BSC has hired Goldman Sachs Group Inc. as financial adviser as it weighs a potential merger with local rival BBK BSC.
Boubyan has a market capitalization of 2.47 billion Kuwaiti dinars، and counts National Bank of Kuwait SAKP as its biggest shareholder. Commercial Bank of Kuwait KPSC also owns part of the lender.
Gulf Bank has a valuation of 1.17 billion Kuwaiti dinars and Alghanim Trading Co. owns a third of the lender، according to data compiled by Bloomberg.
