K&L Gates Advises Masraf Al Rayan on US$2.2 Billion Merger with Al Khaliji Commercial Bank

Doha - Global law firm K&L Gates LLP has advised Qatari bank Masraf Al Rayan on successfully concluding a merger agreement with Al Khaliji Commercial Bank. The merger is valued at QAR 8.2 billion (US$2.2 billion) and will create a bank with combined assets of over QAR171.5 billion (US$47 billion). This will make Masraf Al Rayan one of the largest Shariah-compliant banks in the Middle East and the second-largest bank in Qatar.

The proposed merger between Masraf Al Rayan and Al Khaliji will be affected by a statutory merger, whereby Al Khaliji will be dissolved with all of its assets and liabilities then becoming part of Masraf Al Rayan by operation of law upon completion of the merger. Masraf Al Rayan will issue 0.5 shares for every Al Khaliji share, corresponding to a total of 1.8 billion new shares issued to Al Khaliji shareholders.

The K&L Gates team that advised on the matter was led by Doha partner Amjad Hussain and supported by corporate, financial services, and regulatory teams across the United Kingdom, the United Arab Emirates, and France, with input from partners Richard Dollimore, Raphael Bloch, Sean Crosky, and Philip Morgan and assistance from of counsel Simon Chan and associates Jaime Oon, Roberto Lusardi, Mark Buente, Zaid Abu-Shattal, Samuel Boccara, Oscar Saporito, and paralegal Reine Haidar.

Hussain commented: “We are delighted to have supported Masraf Al Rayan on this landmark transaction. At a time when economic activity is slowing down globally, it’s great to see this deal conclude so swiftly to create one of the largest Shariah-compliant banks in the Middle East and the second-largest financial institution in Qatar. We are very pleased to have showcased the firm’s global platform and our regulatory and corporate capabilities across the region.”

The transaction is subject to approvals by each bank’s shareholders and regulatory authorities, as well as other customary closing conditions.