This follows media reports that the bank has held preliminary discussions with Noor Bank’s shareholders, although the acquisition talks are said to be at an early stage and may not lead to a deal.
Monday 15, April 2019 BY KUDAKWASHE MUZORIWA
Dubai Islamic Bank has said that it is looking at acquisitions among other options as part of its expansion strategy amid reports it is considering a takeover of Noor Bank.
In a bourse filing, DIB stated that it regularly looks at opportunities to support expansion of its activities including acquiring other financial institutions in line with direction of its shareholders and board of directors.
A potential acquisition of Noor Bank by DIB would create a lender with AED 275 billion in assets if completed.
The Investment Corporation of Dubai (ICD) is the biggest shareholder in DIB with a 28.4 per cent stake, and it also owns 22.9 per cent of Noor Bank.
The Middle East’s financial industry is witnessing a wave of consolidation as banks seek ways to improve competitiveness and boost capital amid slowing economic growth.
Abu Dhabi is witnessing the merger of Abu Dhabi Commercial Bank (ADCB), Union National Bank (UNB) and Al Hilal Bank after the consolidation of First Gulf Bank and National Bank of Abu Dhabi to create First Abu Dhabi Bank (FAB) in 2017.
Additionally, last month Bloomberg reported that the government of Abu Dhabi is also considering merging FAB and Abu Dhabi Islamic Bank.