Bank of Bahrain and Kuwait to take over Ithmaar Bank

The Bank of Bahrain and Kuwait (BBK) and Ithmaar Holding have agreed on the potential acquisition of Ithmaar Bank’s Bahrain operations.

The bank operates the largest Islamic retail banking network in Bahrain. The acquisition also includes specific assets of IB Capital, a wholly-owned subsidiary of Ithmaar Holding.

The announcement was made regarding the potential acquisition on August 26. The plans, subject to shareholder and regulatory approvals, are still in the discussions phase and subject to the completion of due diligence by both parties.

If implemented, the plans will "significantly expand BBK’s already large operations in Bahrain and add a full-service Islamic banking solution, while also bolstering the already Ithmaar Bank brand and position it to better capitalize on opportunities for growth", the bank said in a statement.

“BBK has long played a key leadership role in the Kingdom of Bahrain’s banking and financial services industry,” said BBK chairman Murad Ali Murad. “To maintain this leadership role, and as part of its ongoing business expansion strategy, BBK has been exploring opportunities to expand its activities and diversify its offerings, particularly in Sharia-compliant banking businesses. Ithmaar Bank seems a natural fit, and we look forward to exploring this possible acquisition further.”