Gulf Bank and Ahli Bank of Kuwait call off merger talks

Lenders did not disclose the reasons for the move

The merger talks between Al Ahli Bank of Kuwait and Gulf Bank began in June 2022. Photo: Ahli Bank of Kuwait / Gulf Bank

Gulf Bank and Al Ahli Bank of Kuwait are no longer pursuing a merger, following the completion of feasibility studies by consulting companies they appointed in December 2022.

The two banks did not disclose the reasons for the cancellation of merger talks.

Gulf Bank said McKinsey & Co had presented its findings to the board of directors.

“After discussing the outcome of the recommendation with Al Ahli Bank of Kuwait, it was agreed not to proceed with the previously proposed acquisition deal,” the lender said on Monday in a filing to Boursa Kuwait, where its shares are traded.

In a separate filing to the bourse, Al Ahli Bank of Kuwait said the two lenders had agreed to “cancel the previously disclosed acquisition project” after discussing the results of the feasibility studies.

The merger talks began in June 2022. Two months later, the two lenders signing a preliminary agreement outlining the proposed acquisition and the formation of a joint advisory committee.

Some of the committee’s tasks were to assist in the process of obtaining internal approvals and to consider other matters such as the selection and appointment of advisers.