Muscat – Bank Dhofar has received in-principle approval from the Central Bank of Oman (CBO) for its proposed acquisition of Bank of Baroda’s (BOB) Oman branch. This initial approval follows the announcement earlier in October that Bank Dhofar intended to acquire the banking operations of the Indian lender’s Oman unit.

In a disclosure to the Muscat Stock Exchange on Tuesday, Bank Dhofar confirmed that the CBO’s approval is conditional on the completion of certain procedures by both parties. The final approval will be granted once these requirements are met.

The transaction, which was first revealed by Bank Dhofar on October 3, will see the acquisition of all assets and liabilities of Bank of Baroda’s Oman operations by Bank Dhofar.

‘Further to our announcement on October 3, 2024, we are pleased to inform stakeholders that the CBO has granted in-principle approval for the acquisition of Bank of Baroda’s Oman banking business,’ Bank Dhofar said in the disclosure.

Bank Dhofar added that it would provide updates on any material developments related to the acquisition, as necessary. The acquisition remains subject to final negotiations and the execution of binding agreements, including a business transfer agreement, as well as final approvals from the CBO and other relevant regulatory bodies.

According to Bank of Baroda’s regulatory filings, its Oman branch reported total revenue of RO113.35mn and a net worth of RO25.54mn as of March 31, 2024.

As per Indian media reports, the proposed sale of Bank of Baroda’s Oman operations is part of the Indian bank’s broader strategy to rationalise its overseas footprint. The bank has been reviewing its international operations as part of a strategic evaluation to focus on markets with higher growth potential.

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