(MENAFN- Muscat Daily) After months of discussions on a proposed merger/acquisition between United Finance Co (UFC) and Al Omaniya Financial Services Co both the non-banking finance companies have decided not to pursue the transaction any further.
'Al Omaniya has not made an acceptable financially binding offer [and] the board has decided not to pursue this transaction any further' UFC said in a disclosure to the MSM on Monday.
UFC said its board met on Sunday to review Al Omaniya's recent letter which made a non-binding offer which Al Omaniya said was subject to due diligence.
'United Finance has responded and insisted on a commercially binding offer before the due diligence. In view of this precondition laid by United Finance the board of Al Omaniya has decided not to pursue this matter any further' Salim al Awadi acting CEO of Al Omaniya said in a separate disclosure on Monday.
Al Omaniya the largest non-banking finance firm in Oman first relayed its interest in March following which Bank Nizwa and National Bank of Oman (NBO) also threw their hats in the ring to explore the possibility of an acquisition or strategic merger with UFC. However following UFC's invitation to all three suitors to participate in a bidding process Bank Nizwa and NBO withdrew their proposals.
Most non-banking finance companies in the country are facing an increased challenge from local banks which have aggressively ventured into SME and vehicle financing.
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