Merger plans for Kuwait Finance House-AUB underway: chairman

The procedures of Kuwait Finance House’s (KFH) acquisition of Bahrain's Ahli United Bank are underway, as the deal’s feasibility study has finished, Kuwait press agency reported, citing Hamad Al-Marzouq, KFH chairman.

The new entity will be the largest Islamic bank both in the region and globally, with assets reaching over $94 billion and shareholders’’ equity of $10 billion, the firm said in statement.

The acquisition will increase the firm’s lending capability by 61 percent, which will promote its ability to finance mega projects.

According to data compiled by Argaam, the board of directors of both KFH and Ahli United Bank have initially approved the fair share-swap exchange ratio of 2.32 shares. Both banks are currently doing the due diligence.