HSBC, Credit Suisse to advise on Kuwait’s KFH, Bahrain’s AUB merger talks

The deal provides a non-binding framework to explore the creation of “a major regional banking institution. (REUTERS)
Updated 23 July 2018
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HSBC, Credit Suisse to advise on Kuwait’s KFH, Bahrain’s AUB merger talks

  • KFH declined as much as 1.3 percent for a market value of about $12.8 billion

LONDON: HSBC and Credit Suisse have been selected to advise on a possible merger between Ahli United Bank (AUB) and Kuwait Finance House (KFH), AUB said on Sunday.
A merger between Bahrain’s largest bank and Kuwait’s biggest Islamic lender would be the first cross-border tie-up between Gulf banks in recent years at a time when several other banks are consolidating.
HSBC and Credit Suisse were selected to complete studies to assist AUB and KFH in arriving at a fair share exchange ratio, the statement said, without specifying which investment bank was advising which lender.
If agreement on the share exchange ratio is reached, the next step would be the initiation of due diligence and other steps.
KFH said last week it had invited AUB to begin a due diligence process for a potential merger.
The deal provides a non-binding framework to explore the creation of “a major regional banking institution capable of competing more effectively in its existing and new potential markets,” AUB Chairman Hamad Al-Humaidhi said.
Separately, AUB also said its net profit for the second-quarter was $182.7 million, up 20.3 percent from a year earlier.
Shares in AUB rose 6.8 percent earlier this month to the highest levels since April 2017, and led to the Manama, Bahrain-based lender being valued at $5.66 billion.
KFH declined as much as 1.3 percent for a market value of about $12.8 billion.
Bahrain, which is a key Saudi Arabian ally and home to the US’ Fifth Fleet, hired investment bank Lazard to advise on how to boost its public finances, according to sources with knowledge of the matter.


Mideast plays key role in Chinese export of armed drones, report says

Updated 17 December 2018
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Mideast plays key role in Chinese export of armed drones, report says

  • China has exploited America’s selective drone export policy to become an increasingly influential player in meeting demand
  • The report is entitled “Armed Drones in the Middle East: Proliferation and Norms in the Region”

BEIRUT: The use of armed drones in the Middle East, driven largely by growing sales from China, has grown significantly in the past few years with an increasing number of state and non-state actors using them in regional conflicts.
That’s according to a new report by the Royal United Services Institute, or RUSI. The report was released on Monday. It found that more and more Mideast countries have acquired armed drones, either by importing them or by building them domestically.
China has exploited America’s selective drone export policy to become an increasingly influential player in meeting demand.
The report, entitled “Armed Drones in the Middle East: Proliferation and Norms in the Region,” says China is likely to continue playing a key role as supplier of armed UAVs to the region.