Jordan’s Bank al Etihad has finalized the acquisition of smaller peer Investbank, creating one of the largest lending institutions in the kingdom, according to bank officials on Thursday. The boards of both banks have approved a stock-for-stock acquisition that results in a combined entity with a total equity value exceeding $1.4 billion.

Bank al Etihad Chairman Basem Salfiti emphasized that this merger would enable the bank to accelerate its growth trajectory by leveraging the right resources and a strong capital base. The Central Bank of Jordan has actively encouraged mergers within a robust banking sector that boasts over $100 billion in assets, citing an overcrowded market with 16 commercial banks as a reason for consolidation.

The proposed merger will be presented at extraordinary general meetings of both banks, set for June 25. The deal must also secure final approvals from regulatory authorities, according to bank officials. Following the merger, the combined assets of Bank al Etihad and Investbank would total 11 billion dinars, approximately $16 billion, positioning Bank al Etihad among the largest banks in the country, as noted by Salfiti.

This merger is expected to allow Bank al Etihad to expand its operations both domestically and regionally, as the bank looks for additional opportunities for growth.