A proposed merger of Khaleeji Commercial Bank (KHCB), an Islamic retail bank incorporated in Bahrain, with Bank Alkhair, a Bahrain-based Islamic investment bank, has been called off, said a report.

In a statement, KHCB said both banks mutually decided not to proceed with the transaction.

The primary reason for the decision is non-agreement on the structure and the valuation of the deal, reported the Gulf Daily News, our sister publication.

Last week, KHCB chairman Dr Fuad Al Omar told the bank’s shareholders during its annual general meeting that it had completed due diligence on Bank Alkhair and the proposal was still under discussion.

The two banks had announced last year that they had signed a MoU to evaluate the feasibility of merging the two institutions into a larger financial institution.-TradeArabia News Service