Kuwait Finance House (KFH) and Ahli United Bank (AUB) said in July they started talks for a potential merger that may create a lender with about $92 billion in assets.
Sunday 06, January 2019
(Bloomberg)-- Kuwait Investment Authority (KIA), the country’s wealth fund, sees no conflict of interest in a potential merger between Kuwait Finance House (KFH) and Bahrain’s Ahli United Bank (AUB).
Kuwait’s Public Institution for Social Security owns 18.7 per cent of AUB, while the KIA holds 24.1 per cent of KFH, according to Bloomberg data. Kuwait’s finance minister is the chairman of both the Public Institution for Social Security and the KIA.
The role of finance minister at the two institutions doesn’t constitute a conflict of interest, Al Qabas reported, citing the KIA.
HSBC Holdings and Credit Suisse Group are assisting the lenders with the process.
Kuwait Finance House said in 2017 that the KIA confirmed it appointed an adviser to study the feasibility of a possible merger between the banks.