Jordan’s Union Bank Acquires Capital Bank to Form One of the Country’s Largest Financial Institutions
$1.4 Billion Merger to Create Banking Giant with $16 Billion in Assets and Regional Expansion Plans
Watan-Officials at Union Bank in Jordan announced that the bank has acquired Capital Bank in a deal set to create one of the largest financial institutions in the kingdom.
Bassem Salfiti, Chairman of Union Bank, told Reuters that the boards of directors of both banks agreed on a share-swap acquisition deal, which will result in a combined entity valued at more than $1.4 billion.
He added that this move will enable the bank to continue its growth trajectory and accelerate it, supported by adequate resources and a strong capital base.
Jordan’s Union Bank Merger Set to Reshape Local and Regional Banking Landscape
The Central Bank of Jordan has long encouraged mergers to strengthen the country’s banking sector, which is already well-capitalized and boasts assets exceeding $100 billion. Officials note the market is saturated with around 16 commercial banks.
Union Bank, one of Jordan’s largest, primarily offers retail banking services, while Capital Bank specializes in private banking.
The proposed deal will be presented to extraordinary general assembly meetings of both banks scheduled for June 25. Final regulatory approvals are still required.
Salfiti stated that the combined assets would total 11 billion dinars (approximately $16 billion), making Union Bank one of the largest in Jordan.
He added that the merger would give the bank the opportunity to expand its operations both in the local market and regionally, where it will seek new opportunities.
