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Tribune News Network
Doha
Qatar Financial Markets Authority (QFMA) has approved the merger application of Masraf Al Rayan and Al Khalij Commercial Bank (al khaliji), according to statements posted on the Qatar Stock Exchange (QSE) website on Tuesday.
Approval of the merger application is subject to applicable laws and regulations, the statement said.
“In connection with the merger agreement announced on January 7 this year between Masraf Al Rayan and Al Khalij Commercial Bank (al khaliji), a merger application was filed with the QFMA. We are pleased to inform that the QFMA has approved the merger application, subject to applicable laws and regulations,” al khaliji said in a statement posted on the QSE website.
According to joint statement issued by the two banks earlier, Al Khaliji’s business will be absorbed into Al Rayan’s business, and Al Rayan will be the remaining legal entity following the merger. The merger between the two banks will be effected by a statutory merger whereby Al Khaliji will be dissolved and all of its assets and liabilities shall become part of Al Rayan by operation of law with effect from completion of the merger.
The merger will create a larger and stronger financial institution with a strong financial position and significant liquidity available to support Qatar’s economic growth and to finance development initiatives in line with the Qatar Vision 2030.
Furthermore, it will create one of the largest Shari’ah-compliant banks in Qatar and in the Middle East with combined assets worth around QR 172billion ($ 47 billion) as of September 30, 2020.
In a statement recently, the Qatar Central Bank said that the merger of Masraf Al Rayan and al khaliji will boost the strength of Qatari Islamic banks worldwide.
“Such a new banking entity is expected to be the fifth largest Islamic bank in the world with assets amounting to $47 billion,” the QCB said.
The merger is also expected to contribute positively to the economic development in Qatar by supporting corporate businesses and small and medium-sized entities, and will also create a strategic partner for the public sector.
Additionally, the merger will combine the key strengths of the two banks in the areas of retail and private banking services, corporate and government institutions, capital markets, and wealth and asset management, giving the combined business both an excellent proposition for customers and stability through diversification for shareholders.
The combined entity will have an enhanced presence in Qatar and selected international presence, which will help achieve market-leading cost-efficiency, increase future growth potential due to an increase in the capital base and have considerable synergy potential that could accelerate value creation for shareholders.
The merger will create significant scope for achieving cost efficiencies in the coming years and is expected to unlock cost synergies in the region of 15 percent of the combined annualised cost base for the first nine months of 2020 after integration is completed, driven by increased scale and annual efficiency gains. There is also a potential for revenue synergies between the two banks.
Doha
Qatar Financial Markets Authority (QFMA) has approved the merger application of Masraf Al Rayan and Al Khalij Commercial Bank (al khaliji), according to statements posted on the Qatar Stock Exchange (QSE) website on Tuesday.
Approval of the merger application is subject to applicable laws and regulations, the statement said.
“In connection with the merger agreement announced on January 7 this year between Masraf Al Rayan and Al Khalij Commercial Bank (al khaliji), a merger application was filed with the QFMA. We are pleased to inform that the QFMA has approved the merger application, subject to applicable laws and regulations,” al khaliji said in a statement posted on the QSE website.
According to joint statement issued by the two banks earlier, Al Khaliji’s business will be absorbed into Al Rayan’s business, and Al Rayan will be the remaining legal entity following the merger. The merger between the two banks will be effected by a statutory merger whereby Al Khaliji will be dissolved and all of its assets and liabilities shall become part of Al Rayan by operation of law with effect from completion of the merger.
The merger will create a larger and stronger financial institution with a strong financial position and significant liquidity available to support Qatar’s economic growth and to finance development initiatives in line with the Qatar Vision 2030.
Furthermore, it will create one of the largest Shari’ah-compliant banks in Qatar and in the Middle East with combined assets worth around QR 172billion ($ 47 billion) as of September 30, 2020.
In a statement recently, the Qatar Central Bank said that the merger of Masraf Al Rayan and al khaliji will boost the strength of Qatari Islamic banks worldwide.
“Such a new banking entity is expected to be the fifth largest Islamic bank in the world with assets amounting to $47 billion,” the QCB said.
The merger is also expected to contribute positively to the economic development in Qatar by supporting corporate businesses and small and medium-sized entities, and will also create a strategic partner for the public sector.
Additionally, the merger will combine the key strengths of the two banks in the areas of retail and private banking services, corporate and government institutions, capital markets, and wealth and asset management, giving the combined business both an excellent proposition for customers and stability through diversification for shareholders.
The combined entity will have an enhanced presence in Qatar and selected international presence, which will help achieve market-leading cost-efficiency, increase future growth potential due to an increase in the capital base and have considerable synergy potential that could accelerate value creation for shareholders.
The merger will create significant scope for achieving cost efficiencies in the coming years and is expected to unlock cost synergies in the region of 15 percent of the combined annualised cost base for the first nine months of 2020 after integration is completed, driven by increased scale and annual efficiency gains. There is also a potential for revenue synergies between the two banks.
