Omani banks Dhofar, Sohar end merger talks

Oman-listed Bank Dhofar and Bank Sohar have ended their merger negotiations after the two could not reach an agreement on certain issues related to the tie-up, the two lenders said in separate statements on the Muscat bourse.

“Post agreement on the share-swap ratio both banks engaged in discussions to reach and conclude a binding merger agreement. Unfortunately, the banks were unable to reach and conclude such an agreement due to difference in views around material aspects of the draft merger agreement,” Bank Sohar said.

Bank Dhofar in its statement said that it was “in the best interests of shareholders to discontinue the negotiations on the proposed merger with Bank Sohar.”

The two lenders were exploring a possible merger for more than three years. In June, Bank Sohar said the duo had agreed on the share-swap ratio for the merger, following the completion of financial and legal due diligence in April.