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Monday, 8 May 2017

Fitch: GCC Bank M&A Surge Unlikely, Despite Market Conditions | Reuters

Fitch: GCC Bank M&A Surge Unlikely, Despite Market Conditions | Reuters:

"A surge in mergers and acquisitions among banks in Gulf Cooperation Council (GCC) countries is unlikely due to structural impediments, despite market conditions that appear conducive and numerous rumours about potential deals, Fitch Ratings says. We believe tie-ups will be limited to those that create leading domestic market players or allow shareholders to realise value immediately upon the inception of the merger. Banks across the region are facing pressure on profitability and tighter liquidity, especially in countries where public sector deposits have been withdrawn from banks to shore up government finances weakened by lower oil prices. The UAE (which has about 50 banks), Bahrain and, to some extent, Oman would benefit from consolidation as many banks in these countries lack sufficient scale."



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