Warba Bank Explores Merger with Gulf Bank
Deal News | May 27, 2025 | Zawya
Kuwait's Gulf Bank and Warba Bank are considering a potential merger that could establish one of the largest Shariah-compliant banking institutions in Kuwait. The move, initiated by Warba Bank, which owns a 32.75% stake in Gulf Bank, has garnered approval from the Gulf Bank board. This comes after a previous merger attempt with Boubyan Bank was halted due to shareholder divestment, and another intended merger with Al Ahli Bank of Kuwait was discontinued. A merger would position them as the third-largest financial entity in Kuwait, with total assets approximating KWD13 billion. This initiative aligns with a forecast by Fitch Ratings predicting an uptick in Islamic bank M&As in the GCC, driven by a need for competitive advantage. The potential merger mirrors recent activity in the region's banking sector, as evidenced by Emirates NBD's acquisition move in the UAE.
Sectors
- Banking & Finance
- Islamic Banking
Geography
- Kuwait – The main focus of the article is on Kuwaiti banks and the potential merger would impact Kuwait's banking sector.
- GCC – The article refers to GCC-wide consolidation trends and M&A activity in the banking sector.
Industry
- Banking & Finance – The article involves a potential merger between two Kuwaiti banks, illustrating consolidation trends in the banking sector.
- Islamic Banking – The potential merger seeks to enhance competitiveness in Kuwait's local Islamic banking sector.
Financials
- 32.75% – Warba Bank's stake in Gulf Bank.
- 498.2 million Kuwaiti dinars ($1.61 billion) – Amount for which Alghanim Trading sold its 32.75% stake in Gulf Bank to Warba Bank.
- KWD13 billion – Potential total assets of the merged entity of Gulf Bank and Warba Bank.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gulf Bank | Target | Company | A Kuwaiti lender involved in potential merger talks with Warba Bank. |
| Warba Bank | Bidding Company | Company | Initiated merger talks as the largest shareholder of Gulf Bank. |
| Alghanim Trading | Selling Company | Company | Former shareholder of Gulf Bank, sold its stake to Warba Bank. |
| Boubyan Bank | Company | Company | Previously involved in merger discussions with Gulf Bank. |
| Al Ahli Bank of Kuwait | Company | Company | Previously involved in merger discussions with Gulf Bank. |
| Fitch Ratings | Other | Company | Provided a forecast on Islamic bank mergers and acquisitions. |
| Redmond Ramsdale | Person | Person | Head of Middle East Bank Ratings and Islamic Banking at Fitch Ratings. |
| Emirates NBD | Other | Company | A reference point for M&A activity in the GCC banking sector. |