Dubai Islamic Bank (DIB) has acquired Noor Bank through a share swap deal, making it the largest Islamic bank in the world. With the acquisition, DIB will have total assets worth more than Dh275 billion.
DIB will also become the fourth largest bank in the UAE by assets after First Abu Dhabi Bank, Emirates NBD and Abu Dhabi Commercial Bank.
Under the terms of the agreement, DIB issued 651,159,198 new shares which will be listed on the Dubai Financial Market. The acquisition see Noor Bank integrate its operations with with DIB, the media reports said,
Mohammed Ibrahim Al Shaibani, Chairman of Dubai Islamic Bank, told the media that, “The acquisition of Noor Bank is a landmark achievement, establishing DIB as one of the largest Islamic banks in the world and amongst the largest banking entities in the UAE. In line with our strategy, the completion of this deal means that we remain ideally positioned to expand our footprint in the region and beyond, in addition to supporting the UAE’s vision for growth and prosperity.”
DIB’s acquisition of Noor Bank is expected to increase shareholders’ profitability in the long term. Noor Bank’s chief executive John Iossifidis announced his exit in an internal memo to all employees. His resignation came at a time when shareholders of both banks approved the acquisition.
It was reported that Iossifidis would continue his leadership for a short period. After that, Dubai Islamic Bank CEO Adnan Chilwan will assume control until the merger is completed. Iossifidis joined Noor Bank in 2017. Previously, he worked at Mashreqbank, the oldest privately owned bank in the UAE.