Capital Bank of Jordan will acquire Lebanese lender Bank Audi SAL's businesses in Iraq and Jordan for an undisclosed amount, Reuters reported.
The Lebanese banking sector is under sustained pressure due to the economic and political woes in Lebanon, and Bank Audi has looked to off-load assets as a means to navigate the crisis.
This deal will increase Capital Bank's assets to nearly 3.7 billion Jordanian dinars and shareholders equity will exceed 400 million dinars, according to the report.
"This agreement responds to Capital Bank of Jordan's plans to enhance its competitive position and expand its regional and local expansion in Jordan and Iraq," Capital Bank Group Chairman Bassem al-Salem said.
The agreements include the acquisition by the National Bank of Iraq, a subsidiary of Capital Bank Group, of the operations of Bank Audi's Iraq branch network that will retain all of Bank Audi's transactions along with its staff.
In September, Capital Bank of Jordan said it was looking to acquire Bank Audi's units in Iraq and Jordan.
First Abu Dhabi Bank PJSC resumed negotiations to acquire Bank Audi's Egyptian unit, while Emirates NBD Bank PJSC is also reportedly eyeing the Lebanese bank's operations in Egypt.
As of Dec. 29, US$1 was equivalent to 0.71 Jordanian dinar.