Bank of Sharjah, Invest Bank in merger talks to form $13.8bn entity

Dubai / Reuters

Bank of Sharjah and Invest Bank are in merger talks that could create an institution with about AED50.6 billion ($13.8 billion) of assets, sources familiar with the matter told Reuters.
In the latest latest sign of consolidation in the United Arab Emirates’ crowded banking industry, the two lenders have held on-and-off discussions over a potential merger since last year, the sources said. One of the sources added that the tie-up between two of the UAE’s smallest banks was being driven by authorities in the emirate of Sharjah, where the lenders are based.
JPMorgan is advising Bank of Sharjah on the potential deal, two of the sources said. It was
not immediately clear which institution is advising Invest Bank.
Bank of Sharjah and Invest Bank did not respond to a Reuters request for comment. JPMorgan declined to comment. Bank of Sharjah is 22.2 percent owned by the Sharjah government, its top shareholder, Thomson Reuters data shows. The biggest shareholder in Invest Bank, which is slightly smaller in terms of assets, is Sharjah-based International Private Group, which owns 15.5 percent.