BAHRAIN Trends and Developments Contributed by: Noor Hassan Radhi, Fatima Al Ali and Saifuddin Mahmood, Hassan Radhi & Associates
Bahrain continually revises the laws with the aim of enhancing commercial dispute resolution mechanisms, to increase familiarity and predict - ability and to strengthen investor confidence. Current M&A Landscape in Bahrain Bahrain’s M&A sector has been experiencing dynamic activity, with an increase in M&A, includ - ing cross-border M&A, IPOs and deal-making, particularly in the financial services sector, which has witnessed significant consolidation efforts to enhance operational efficiency and market share. M&A transactions continue to maintain strong momentum. Some notable recent M&A deals in Bahrain are outlined below. Insurance sector In 2024, Solidarity Bahrain B.S.C. completed the acquisition of 100% of the issued and paid-up ordinary shares of Al Hilal Life B.S.C.(c) and its subsidiary, Al Hilal Takaful B.S.C.(c), from Ahli United Bank B.S.C. In 2025, Solidarity Bahrain B.S.C. and Bahrain National Holding Company (BNH) signed sale and purchase agreements for Solidarity Bah - rain to acquire 100% of the issued share capi - tal of BNH’s wholly-owned subsidiaries Bahrain National Insurance Company (BNI) and Bahrain National Life Assurance Company (BNL). These transactions strengthen the company’s position in the insurance and takaful industry, and contribute to the overall stability and com - petitiveness of Bahrain’s financial services sec - tor. Banking sector Kuwait Finance House (KFH) successfully acquired Ahli United Bank in 2022, resulting in a combined entity with an expanded presence in 12 countries. Following the acquisition, KFH
merged with Ahli United Bank Kuwait in Febru - ary 2024. In May 2024, Al Salam Bank completed the acquisition of Kuwait Finance House Bahrain (KFH Bahrain) from Kuwait Finance House Group. The consolidation of KFH Bahrain result - ed in accelerating market share acquisition and enhanced the bank’s offerings. The transaction underscores the commitment towards bolstering Bahrain’s position as a leading Islamic financial centre in the region. HSBC is in the process of divestment of its Bah - rain retail banking operations to Bank of Bahrain and Kuwait (BBK). This is a strategic restruc - turing move that highlights consolidation in the banking sector. The National Bank of Bahrain and BBK have embarked on discussions regarding a potential merger. A successful merger would create a sig - nificant banking entity in Bahrain. This consoli - dation aligns with Bahrain’s efforts to strengthen In February 2025, the Saudi Arabian Mining Company (Ma’aden) completed the acquisition of Saudi Basic Industries Corporation’s (SABIC) 20.62% stake in Aluminium Bahrain (Alba). Bahrain’s M&A landscape has been notably active, reflecting the nation’s strategic economic initiatives. Ongoing and Future Considerations Price adjustment mechanisms in M&A agreements While price adjustments due to warranty breach - es are common in M&A transactions in Bahrain – allowing for direct adjustments to account for its banking sector. Industrial sector
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