- Omani Bank Nizwa has declined to participate in competitive bidding for the merger or acquisition of local United Finance Company
- It originally proposed a merger in February
- Local National Bank of Oman and al-Omaniya Financial Services have expressed an interest in bidding
Omans Bank Nizwa has officially pulled out of a proposed merger with local United Finance Company.
Bank Nizwa, an Islamic bank founded in 2013, had proposed a strategic merger between the two entities on 11 February, 2015.
On March 12 local al-Omaniya Financial Services also expressed an interest in a merger or acquisition.
United Finance then invited competitive bidding from other financial institutions on 13 May.
The primary objective of the proposed merger was to benefit both entities to work ultimately as a single but a larger combined institution, said Bank Nizwa in a statement. In light of this new development and keeping the banks best interest in mind, Bank Nizwa has decided to withdraw its initial proposal and not enter into the bidding process.
Muscat-based National Bank of Oman and al-Omaniya Financial Services have confirmed their interest in bidding for a merger with, or the acquisition of, United Finance.
United Finances share price on the Muscat Securities Market rose 1.57 per cent to RO0.129 after the news.
United Finance recorded a net profit of RO4.96m ($12.9m) in 2014, a 36 per cent increase on 2013 profits of RO3.64m. It had total assets of RO40.75m at the end of 2014.