The acquisition also includes financial services entities. stake in Credit: Tumisu from Pixabay.

Al Salam Bank has completed the acquisition of certain assets from Ithmaar Holding in a deal valued at $2.2bn.

The acquired assets comprise the entire consumer banking business of Ithmaar Bank, a 26.19% stake in Bank of Bahrain and Kuwait and a 55.91% shareholding in Solidarity Group, which owns the insurance firm Solidarity Bahrain.

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The transaction also includes a 1% stake in The Benefit Company, MasterCard shares and a portfolio of Sukuk and liquid assets.

For Al Salam Bank, the acquisition supports its growth and its aim of diversifying business lines.

The deal, which was announced in January 2022, secured shareholders’ approval in March and the Central Bank of Bahrain cleared the deal in June.

Al Salam Bank group CEO Rafik Nayed said: “The integration of the consumer banking business of Ithmaar Bank with Al Salam Bank will be a seamless transition and will lead to an enhanced banking experience.

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“Al Salam Bank will leverage on the team’s strengths and expertise to innovate and deliver enhanced banking products and services to enrich the customer experience. We look forward to a new chapter of growth that will cement Al Salam Bank’s position as Bahrain’s largest Islamic bank.”

Al Salam Bank hopes to complete the take-over of Ithmaar Bank’s consumer banking operations in 2022 itself.

It stated all banking activities and services will continue to function as usual.

Ithmaar Holding chairman Amr Mohammed Al Faisal said: “Following the transaction, Ithmaar Holding still retains a well-diversified portfolio of international and local financial and other assets, which includes banking businesses both in Bahrain and in Pakistan.

“In Bahrain, Ithmaar Bank remains a wholly-owned subsidiary of Ithmaar Holding and continues to build on its rich heritage by embarking on a new chapter of growth with an exclusive focus on corporate banking, particularly the fast-growing Small and Medium Enterprises (SME) sector.”