Ithmaar Holding has agreed to sell Solidarity Group Holding, one of the largest takaful groups globally and the parent of Solidarity Bahrain, to Al Salam Bank.
Solidarity Group Holding is also the parent company of Solidarity First Insurance Company in Jordan.
The deal also involves the acquisition by Al Salam Bank of the consumer banking business of Ithmaar Bank, and Ithmaar Holding’s ownership stake in both Bank of Bahrain and Kuwait, said Bahrain-headquartered Al Salam Bank in a statement.
This announcement follows the execution of a memorandum of understanding between the two entities in October 2021. The transaction remains subject to the approval of Ithmaar Holding’s shareholders and the signing of definitive agreements.
This transaction will position Al Salam Bank as the largest Islamic lender in Bahrain. It is also in line with Bahrain central bank’s objectives to develop the Islamic finance industry. M