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Bank merger in Oman delayed by bad debt review

MUSCAT - The proposed merger between Bank Muscat and National Bank of Oman (NBO), which was to take place on January 1 but postponed to sort out "pending issues", will now be completed in the first quarter of this year, it was announced here yesterday.

The merger "is now well poised to move on to the fast track with the two banks agreeing upon a future course of action on all pending issues," a spokesman for Bank Muscat said.

He added the union, which was delayed due to "certain procedural issues", was now expected to be completed during the first quarter of 2005.

"In the light of last financial year coming to a close, it has now been agreed that instead of both banks jointly appointing an independent auditor to review the reasonableness of the provisions made by NBO as at 30 September 2004 as originally planned, an independent auditor would be appointed by Bank Muscat to review the reasonableness of the provisions made in NBO's books of accounts, as at 31 December 2004," the spokesman said.

Bank Muscat intends to appoint KPMG as the independent auditor, he added.

Both banks will convene an Extraordinary General Meeting (EGM) where the merger proposal will be presented before their shareholders for approval.