MIDF, Saudi Al Rajhi Bank's unit in talks over possible merger

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Riyadh: The Malaysian Industrial Development Finance (MIDF) is in talks with Al Rajhi Bank’s subsidiary in Malaysia, over a potential merger, informed sources said.

If completed, the consolidation will create a new international bank offering Islamic sharia-compliant services, sources told Bloomberg News.

“The potential merger would expand the scope of MIDF’s business and give it the right to take deposits,” one of the sources said.

The transaction may lead to a new entity with SAR 2.25 billion ($600 million) in assets.

“Deliberations by MIDF and Al Rajhi are at an early stage, and the firms would need approval from Malaysia’s central bank to formally start detailed negotiations,” the sources said.

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