- Bank Dhofar SAOG from Oman intends to propose a non-binding offer to merge with Ahli Bank SAOG, a smaller rival. If successful, the merger could lead to an entity with assets worth over $19 billion.
- With $11.2 billion in assets, Dhofar is the second-largest bank in Oman, whereas its smaller competitor, Ahli Bank, is partly owned by Bahrain's Ahli United Bank and has assets of just under $8 billion. Previously, Dhofar had considered merging with National Bank of Oman, which was later abandoned in 2019. Dhofar's current stock value is $1.21 billion, having dropped by 11% since the beginning of this year, while Ahli Bank's shares have increased by almost 2%, resulting in a valuation of $881 million.
Why it matters
The merger of Bank Dhofar SAOG and Ahli Bank SAOG would be another development in the consolidation of Oman's banking industry, which is undergoing reorganization by the government to enhance efficiency and returns. Previously, HSBC Bank Oman announced its merger with Sohar International Bank, and in 2020, Oman Arab Bank agreed to acquire Alizz Islamic Bank.