(MENAFN- Arab Times) Al Salam Bank has agreed to acquire fellow Bahraini lender BMI Bank, an affiliate of Oman's Bank Muscat, through a share-swap deal as small banks in the kingdom consolidate operations to remain competitive.
Islamic lender Al Salam will exchange 11 of its shares for each BMI Bank share to create the kingdom's fourth-largest commercial bank. The tie-up is still subject to shareholder approval, with meetings to vote on assent due to be held in either September or October, BMI said in a statement.
Shares in Al Salam were 5.9 percent higher at 0726 GMT in muted trading. Bank Muscat, which owns 49 percent of BMI, was trading 1.4 percent lower as part of a wider sell-off in Oman.
BMI Bank and Al Salam first announced in May that they were considering a merger. The tie-up will create a bank with assets worth BD1.79bn ($4.75bn), according to second-quarter results from both institutions.
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