HSBC Bank Oman said on 19 June it would hold preliminary talks with local Sohar International Bank to discuss a possible merger.
Sohar International had earlier announced in a filing to the Muscat Stock Exchange: "The board of directors of Sohar International (SIB) in its meeting held on June 15, 2022, resolved to send a letter of intent to the Board of Directors of HSBC Bank Oman (HSBC Oman) to explore the possibility of a merger between the two entities, in a deal which would involve HSBC Oman shareholders being offered cash and shares - subject to obtaining final approvals from the respective boards, regulators and shareholders."
In a statement HSBC said it had considered the letter of intent it received from Sohar and had agreed to engage in preliminary discussions to obtain more information on the possible offer.
"If the parties agree to proceed with the merger, it will be subject to various conditions including ... approval of the relevant regulatory authorities and of the shareholders at the extraordinary general assembly of each bank," it added.
