Bahraini banks prepare to discuss key merger terms

National Bank Of Bahrain (NBB) has submitted a proposal to the board of the Bank Of Bahrain And Kuwait (BBK) for their ongoing potential merger.

Negotiations will commence on the proposed terms, including the exchange ratio, after a proposal on the key terms of the potential merger was submitted to BBK on April 26, NBB said in a statement to the Bahrain Bourse on Thursday.

In a separate filing, BBK said it received a letter from NBB outlining indicative terms for the potential merger, including a proposed exchange ratio.

The bank will review and discuss the proposal during its meeting on May 5, following which it will commence negotiations with NBB.

The two banks declared they will make more disclosures in due course.

NBB and BBK initiated a merger proposal in June 2024, with due diligence starting in January 2026.

Goldman Sachs was appointed as financial adviser for the proposed merger, which was slated for completion last year.

No timeline has been proposed for the merger’s completion.

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Bahrain’s Mumtalakat Holding Company holds a 49 percent stake in NBB, which was licensed in 1957. Shareholders in BBK, established in 1971, include the public, the Bahraini government and Kuwaiti banks and investment companies. 

BBK and NBB will report financial results for the first quarter of 2026 on May 14.

Shares in NBB closed up 1.4 percent at BHD0.50 ($1.32) on Thursday, while BBK closed flat at BHD0.54.