Ahlibank Oman announced that its board of directors had, at a meeting on 10 April 2025, accepted the terms of a Letter of Intent submitted by Sohar International Bank proposing a merger of the two institutions. The acceptance establishes an exclusivity period during which the banks will conduct comprehensive due diligence and engage in formal negotiations, with Sohar International designated as the surviving entity should the transaction reach completion. The announcement was reported in the Muscat Daily.
If completed, the combined institution would hold projected assets of approximately OMR 11.1 billion, equivalent to roughly $28.84 billion.
EXCLUSIVITY PERIOD
During the exclusivity window, the banks' management teams, financial advisers, legal counsel and auditors will work through the detailed financial, operational and regulatory due diligence required before any binding merger agreement can be tabled for shareholder and regulatory consideration.
Sohar International had publicly signalled merger interest in the days preceding Ahlibank's board acceptance.
APPROVALS
Both Ahlibank and Sohar International will need to secure approvals from the Central Bank of Oman and the Capital Market Authority, among other relevant bodies, before any merger can be finalised. The due diligence process will determine whether the two banks proceed to a formal and binding merger agreement.