Masraf Al Rayan sets up committee to oversee merger with IBQ, Barwa Bank

Masraf Al Rayan yesterday said a committee has been established to oversee the three-way merger with International Bank of Qatar and Barwa Bank as per an initial timeline.The committee, which has been approved by the three collective boards of directors, would utilise the support of financial and legal consultants with the objective of conducting the necessary studies and evaluations for the merger process in compliance with the Qatar’s laws and regulatory requirements as well as best international practices, said Masraf Al Rayan chairman and managing director Dr Hussain al-Abdullah.His statement comes in view of a Reuter’s report that said the proposed merger is expected to be completed within six months.“The time taken to complete the merger process is subject to the progress of work by the committee, as per regulatory requirements; and that the structure of the merger is subject to the final approvals from the boards of directors of the three banks and the Investors, upon obtaining the necessary approvals from the respective regulatory and supervisory authorities,” he said.The three-way merger of Masraf Al Rayan, International Bank of Qatar and Barwa Bank seeks to create second-largest bank in Qatar with total assets amounting to around QR173bn and a market share of around 14%.Global credit rating agency Moody’s had said the proposed three-way merger would be beneficial for the Qatari banking system as it would strengthen the overall business proposition and product diversification of the combined entity given their individual segmental strengths.