The proposed acquisition encompasses all assets and liabilities of Bank of Baroda's Oman operations. It remains subject to final negotiations, the execution of binding legal agreements—including a business transfer agreement—and the procurement of necessary approvals from the CBO and other regulatory authorities.
Bank Dhofar's Board of Directors approved the acquisition in principle during a meeting held on October 3, 2024. The bank subsequently notified the Financial Services Authority, the Muscat Stock Exchange, and the investor community of its decision, emphasizing that the transaction's completion hinges on regulatory consents and successful finalization of terms.
This development aligns with Bank Dhofar's strategic objectives to bolster its market share and diversify its service offerings in Oman's competitive banking sector. By integrating Bank of Baroda's local operations, Bank Dhofar anticipates enhancing its customer base, broadening its asset portfolio, and achieving greater operational efficiencies.
Bank of Baroda, a prominent international bank with a significant presence in various countries, has been operating in Oman for several years. The decision to divest its Omani operations may be part of a broader strategy to streamline its international presence and reallocate resources to core markets.
The CBO's in-principle approval signifies a crucial step forward, outlining specific procedures that both institutions must complete. Upon fulfillment of these requirements, the CBO will issue its final approval, allowing the transaction to proceed to completion.
Market analysts view this acquisition as a positive move for Bank Dhofar, potentially enhancing its competitive position in the Omani banking landscape. The consolidation is expected to lead to a more robust financial institution capable of offering a wider range of services and improved customer experiences.
However, the transaction's success will depend on meticulous due diligence, seamless integration of operations, and adherence to regulatory standards set forth by the CBO and other authorities. Both banks are expected to work closely with regulators to ensure compliance and transparency throughout the acquisition process.
Stakeholders, including customers and employees of both banks, are advised to stay informed through official communications from the respective institutions. As the acquisition progresses, both banks are likely to provide updates to ensure a smooth transition and address any concerns that may arise during the integration phase.