The deal involves Burgan Bank acquiring UGB’s assets and operations across four key regional markets: Algeria, Jordan, Tunisia, and Iraq. These operations include Algeria Gulf Bank, Bank of Baghdad, Jordan Kuwait Bank, and Tunis International Bank. The acquisition is valued at approximately $727 million, marking a crucial step in Burgan’s ambitions to establish itself as a leading full-service bank within the MENA region.
Burgan Bank, a subsidiary of Kuwait Projects Company (KIPCO), plans to issue 200 million shares as part of the transaction. The move is seen as a strategic effort to consolidate and strengthen the bank’s regional operations, leveraging its expertise in commercial banking to foster growth in some of the most dynamic economies in the region.
The acquisition is still subject to approval from other regulatory bodies in Kuwait and the countries where UGB’s operations are based. However, with the approval from Bahrain’s Central Bank, Burgan Bank is optimistic about closing the deal in the coming months.
This acquisition aligns with Burgan Bank's long-term vision of expanding its geographical presence and enhancing its service offerings. By integrating UGB’s assets, Burgan aims to tap into the robust economic growth prospects in these markets, further solidifying its position in the MENA banking sector.
The transaction also reflects the broader consolidation trend in the banking sector across the region, driven by the need for greater efficiency, scale, and competitiveness. For Burgan Bank, this acquisition is expected to provide a strong platform for future growth, enabling it to better serve its clients and stakeholders across the MENA region.
The finalization of this deal will mark a significant milestone for Burgan Bank, reinforcing its commitment to regional expansion and solidifying its status as one of the leading banking institutions in the Middle East.