Kuwaiti financial firm, The International Investor (TII), recently announced that following a request by the Saudi giant Dallah Albaraka Group (DBG), parties are currently discussing the possibility of winding up the $300 million merger.
The transaction, concluded in June 2001, was to create a major regional Islamic banking institution, with assets in excess of $3 billion, capital of around $350 million and a network of over 100 branches. DBG interest in the new Albaraka & TII (ATII) firm totaled 35 percent stake.
“Although difficult and complicated at this stage, both parties will work together amicably to ensure that the unwinding process is carried out in a speedy, effective and friendly manner.
This is a disappointing development, given the extensive merger integration work that has been undertaken to date. However, TII still believes that the strategic goals of the merger are very valid and plans to pursue these independently,” read a TII statement.
A DBG-TII memorandum of understanding (MoU) signed last year announced a "groundbreaking" deal to combine DBG's assets in nine regional banking subsidiaries with TII's Gulf Cooperation Council (GCC). ”The deal will create the first Islamic financial services group to offer a full range of investment and retail banking services to clients across the Middle East and Africa," the two firms had originally said.
The Jeddah-based DBG provides banking, investment, insurance and lending services to businesses located throughout the Muslim world. — (menareport.com)
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