Warba: Seek to Merge with Gulf Bank in Strategic Move
Deal News | May 27, 2025 | Zawya
Kuwait's Gulf Bank and Warba Bank are considering a merger, potentially creating one of the country's largest Shariah-compliant banks. Warba Bank, a significant shareholder of Gulf Bank, has initiated merger talks, aligning with the Gulf Bank board's approval. This merger aims to boost competitiveness in Kuwait's Islamic banking sector. This potential merger follows two previous merger discussions involving Gulf Bank, one with Boubyan Bank and another with Al Ahli Bank of Kuwait, which did not proceed. If successful, the merger would result in a combined entity with assets worth KWD13 billion, making it the third-largest financial institution in Kuwait. The move aligns with a Fitch Ratings forecast predicting a rise in Islamic bank mergers in the GCC, due to pressures of an over-banked region and the need to consolidate for competitive advantage.
Sectors
- Financial Services
- Islamic Banking
Geography
- Kuwait – The primary focus is on Kuwaiti banks and the local banking sector.
- Gulf Cooperation Council (GCC) – The merger and broader consolidation trends are relevant across the region, as indicated by Fitch Ratings' forecast.
Industry
- Financial Services – The article involves banking services and financial institutions operating within the GCC, focusing on Islamic banking mergers.
- Islamic Banking – The merger discusses potential growth in the Shariah-compliant sector, indicating it as a key area of interest.
Financials
- 498.2 million Kuwaiti dinars – Sale value of Alghanim Trading's 32.75% stake in Gulf Bank to Warba Bank.
- KWD13 billion – Total assets of the combined Gulf Bank and Warba Bank entity, making it the third largest in Kuwait.
- 11.95 UAE dirhams per share – Price per share offered by Emirates NBD in their acquisition of remaining stake in Emirates Islamic Bank.
- 69.8 million UAE dirhams – Total value of the Emirates NBD acquisition offer.
- 1.61 billion USD – Equivalent value in USD of the divestment of Alghanim Trading's stake in Gulf Bank.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gulf Bank | Target Company | Company | One of the leading banks in Kuwait involved in the merger discussion with Warba Bank. |
| Warba Bank | Bidding Company | Company | Initiated merger talks and is the largest shareholder in Gulf Bank. |
| Alghanim Trading | Selling Company | Company | Previously disclosed a divestment of a 32.75% stake in Gulf Bank. |
| Boubyan Bank | Potential Merger Partner (Not Proceeded) | Company | Was in talks for a merger with Gulf Bank that did not materialize. |
| Al Ahli Bank of Kuwait | Potential Merger Partner (Not Proceeded) | Company | Previously explored merger talks with Gulf Bank. |
| Fitch Ratings | Industry Analyst | Company | Provided analysis on the consolidation trends within the GCC banking sector. |
| Redmond Ramsdale | Head of Middle East Bank Ratings and Islamic Banking | Person | Provided expert opinion on the potential rise of Islamic bank mergers. |
| Zawya | News Source | Company | Source of information about the merger talks. |