Sohar International Bank and Ahli Bank SAOG have decided to postpone their proposed merger after failing to receive the necessary regulatory approvals.
In April, the two banks had announced plans to merge, aiming to create the largest lender in Oman with combined assets of nearly $30 billion.
In a filing to the Muscat Stock Exchange on Monday, Ahli Bank said that to meet its capital objectives, it will proceed with a capital increase that was initially announced in March but later suspended when merger discussions began.
Ahli Bank will now move forward with a rights issue worth 50 million Omani rials ($130 million).
Banks across the GCC have increasingly been exploring consolidation as a strategic move to enhance competitiveness and resilience.
In August 2023, Sohar International Bank completed the takeover of HSBC Bank Oman.
(Writing by Brinda Darasha; editing by Seban Scaria)
brinda.darasha@lseg.com
