Bahrain - The National Bank of Bahrain (NBB) and Bank of Bahrain and Kuwait (BBK) announced that they have signed a non-binding memorandum of understanding (MoU) to advance discussions regarding a potential merger, which would create a significantly larger and more dynamic banking entity in the kingdom.

The announcement was made at the Gateway Gulf 2025 investment forum, signalling a formal start to a collaborative process that could reshape Bahrain’s financial landscape.

The MoU establishes a clear framework for the two major lenders to begin a reciprocal due diligence process and negotiate the definitive, binding terms of a merger.

Should an agreement be reached, both banks believe the consolidation would create a stronger, more agile entity with enhanced scale and capabilities. The primary goal is to empower the merged bank to better support Bahrain’s Vision and contribute meaningfully to the kingdom’s economic diversification and global competitiveness.

The potential merger is expected to explore new strategic opportunities aimed at delivering greater value to customers, shareholders, and the economies they serve.

Any finalised transaction will be subject to several conditions, including agreeing on the binding terms, securing the necessary regulatory approvals, and obtaining consent from the shareholders of both NBB and BBK.

Both institutions stressed their commitment to working closely and constructively with regulators and stakeholders to ensure a smooth assessment of the merger’s viability and optimal structure.

Until a definitive agreement is reached and all necessary approvals are secured, NBB and BBK confirmed they will continue to operate independently, focusing on their respective strategies and maintaining their commitment to customer service and innovation. Both banks reaffirmed their dedication to transparency, strong governance, and value creation throughout the process.

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