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08 Mar 2019, Gergana Bencheva, EMIS Editor

Bank Dhofar, National Bank of Oman give up merger talks

Oman-based Bank Dhofar and the National Bank of Oman have decided to give up their merger talks as the two partners could not agree on the terms of the future transaction, CEEMarketWatch reported. Thus, the country’s banking sector would miss a chance for a beneficial consolidation.

The failed merger deal would have given the new entity a market share of about 24% in terms of assets. Also, the move would have allowed banks to expand participation on projects of national importance, reduce funding cost pressure, and increase the groups’ pricing power.

Competition among banks in Oman has increased in the past years as about 20 licensed banks serve a population of only 4.6 million people. Oman and its peers from the Gulf Cooperation Council (GCC) have been seeking the consolidation of their banking sectors because of a decline in their economic and credit growth amid low oil prices, CEEMarketWatch reminded.

Sign in and read the full article in emis.com, and find out more about EMIS. Original source: CEEMarketWatch