Bahrain bank seeks to acquire rival’s shares

National Bank of Bahrain (NBB) is weighing an acquisition of shares in Bahrain Islamic Bank (BISB), the company said in a disclosure yesterday.

The lender is “considering making a potential voluntary offer for issued shares in BISB,” the filing said, without specifying whether NBB would be buying a stake or a complete acquisition of BISB.

NBB is the second-largest Bahraini bank by market capitalisation, according to Refinitiv data. BISB is the eighth-largest by market capitalisation, the data shows. This is the latest in a flurry of merger activity by Gulf Arab banks as they seek to consolidate their position in an overbanked sector and contend with slower economic growth.

NBB has provided the Sharia-compliant lender with a non-binding offer, the filing said, subject to due diligence, pricing, and shareholder and regulatory approvals. The offer may or may not result in a formal offer, it added.

Two of Abu Dhabi’s top banks merged last year to create First Abu Dhabi Bank, with assets of $175 billion (Dh642.77 billion).

Earlier this month, Saudi British Bank secured a binding deal for its acquisition of the lender’s smaller rival Alawwal Bank.