(Reuters) – United Arab Emirates’ largest sharia-compliant bank Dubai Islamic Bank is in talks to acquire Dubai-based Noor Bank, Bloomberg reported, citing people with knowledge of the talks.
Lender Dubai Islamic Bank has had held preliminary discussions which are still at an early stage with smaller rival Noor Bank’s shareholders which may not lead to a deal, Bloomberg said on Sunday.
The potential deal comes among a wave of mergers in the Middle East’s financial sector and if completed, would create a lender with $75 billion in assets, Bloomberg added.
Last week, Abu Dhabi Islamic Bank and First Abu Dhabi Bank denied reports of being in merger talks after a news report said the emirate was considering combining them.
Dubai Islamic Bank did not immediately respond to a request for comment while a spokeswoman for Noor Bank said it does not comment on market speculation.
Reporting by Mekhla Raina in Bengaluru; Editing by Phil Berlowitz