Jordan-based Capital Bank Group has inked a deal to acquire Bank Audi Group’s branch network in Jordan and Iraq.
Capital Bank will acquire Bank Audi’s Jordan branches, while its retail banking arm National Bank of Iraq (NBI) will acquire the operations of Bank Audi in Iraq.
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The purchase also includes the assets and liabilities of these branches.
Under the deal terms, Bank Audi’s 14 Jordan branches and five Iraq branches will be merged with Capital Bank’s branch network.
The acquisition brings the total number of branches operated by the group and NBI to 28 in Jordan and 18 branches in Iraq, respectively.
As of September 2020, Bank Audi had JOD506m ($713m) in assets in Jordan, while its Iraq branches had IQD275bn ($189m).
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By GlobalDataThe acquisition will increase Capital Bank Group’s assets to around JOD3.7bn ($5.23bn).
The lender aims to expand into Iraq with its majority stake (62%) in NBI, which has $533m in assets.
Capital Bank CEO Dawood Al-Ghoul said that the bank will retain the client accounts as well as the staff of Bank Audi.
He said: “We will honour all commitments towards clients that were contracted by Bank Audi’s units in Iraq and Jordan as they are.”
The banks already received preliminary approval from the Central Bank of Jordan and the Central Bank of Iraq for the deal.
The agreement was then signed by Capital Bank Group chairman Bassem Al-Salem and Bank Audi chairman and group CEO Samir Hanna, following a due diligence process.
The transactions are subject to receipt of final approval from supervisory and regulatory authorities. The financial details are not divulged.
Al-Salem said: “This agreement is in line with Capital Bank’s expansion strategies regionally and locally, ultimately strengthening its competitive position.
“The move will also enhance the steadfastness of Capital Bank Group’s financial indicators, allowing it to continue providing innovative and efficient banking services to corporate and individual customers, as well as the continued development of products and solutions supported by the Bank’s bold digital transformation policy.”
Hanna added: “The selection of Capital Bank as an exclusive bidder on this transaction was made taking into account the business continuity of Bank Audi’s entities in Jordan and Iraq, and the interests of their stakeholders, employees and customers alike, in addition to the beneficial impact which the transaction is expected to have on their future business development.”
