Barwa Bank and International Bank of Qatar (ibq) have signed an agreement for the merger of the two banks to create a leading Sharia compliant financial institution with a solid financial position and robust liquidity.

The merger aims to support Qatar’s economic growth and finance development initiatives in line with Qatar National Vision 2030, a statement said.

According to this merger agreement, the two banks will work to complete the necessary steps to consummate the merger, obtain the required approvals from the regulatory authorities and obtain shareholders’ approvals before the end of 2018.

The two entities will be consolidated and operate as one bank subsequent to their respective general assemblies and the adoption of their final financial results for the fiscal year ending in December 2018.

The merger will create a combined entity with total assets of QR80 billion ($21.8 billion) and a shareholder equity base of over QR12 billion, supporting the economic development of the State of Qatar by creating a strategic partner for the Government and the public sector while assisting the growth of private sector.

This agreement would combine the key strengths of the two banks, in the areas of retail and private banking services, corporate and government institutions, capital markets as well as wealth and asset management. By leveraging these strengths, the combined entity will be ideally positioned to meet the needs of a wider range of clients thus increasing its market share.

Credit Suisse was previously appointed as financial advisor to Barwa Bank, Qinvest advisor to the Board, and Perella Weinberg as financial advisor to International Bank of Qatar.

The two banks have agreed to appoint a top tier management consultant in order to develop an integrated plan, identify the strategy and achieve the desired objectives of the combined entity, the most important of which is increase revenue and reduce costs, which will provide added value to shareholders and customers of the two banks and the national economy. – TradeArabia News Service