(Sukuk.net - The Peninsula) Doha-based al khaliji yesterday announced it has acquired BLC Bank (France) S A at the purchase price of $250m after receiving all necessary regulatory approvals. "We completed on Monday all of the legal arrangements and we are now the owners of 100 percent of BLC France S A," David Proctor, al khaliji Chief Executive Officer said here yesterday.

Last year, al khaliji had announced it was in advanced negotiations to purchase the UAE assets of BLC Bank (France) S A, which included BLC's branches in the United Arab Emirates in Abu Dhabi, Dubai, Ras Al Khaimah and Sharjah. The transaction announced yesterday has been extended to include the acquisition of the entire share capital of BLC Bank (France) S A, adding BLC's business in Paris, France to al khaliji's network. The transaction was closed on November 3, 2008.

"We now have the largest network wholly owned branch network of any Qatari bank in the UAE and we also have a full EU banking licence," said Proctor. "The fact that we have a full EU licence is a wonderful platform for a new bank like al khaliji. As Europe emerges from economic weakness we see tremendous opportunities for a bank like al khaliji to grow."

The growing trade and investment relationship between the GCC — Qatar in particular — and France is one of the factors behind al khaliji's decision to acquire the entire bank, said Proctor. In addition by acquiring the Paris operations as well al khaliji now has a full EU banking licence which provides tremendous opportunity for growth going forward. "We see a big opportunity for travellers from the GCC into Europe and we also see opportunities to grow up the trade and investment flows between Europe and the GCC," he said of the new acquisition.

"In Paris we will focus much more on the corporate and treasury activity as well as the premium activity. As a first step, the Paris branch will used to offer Premium services to GCC customers as well as finance and advisory support for the rapidly growing trade and investment flows between France and the GCC."

Proctor expects the acquisition would be integrated very quickly. In fact, al khaliji has already set up a joint integration team combining BLC and al khaliji staff to work together and bring the two banks into one al khaliji very quickly.

He said the focus is to rebr-and BLC within the space of six months and brand all the branches al khliji and then introduce its products and services into the branches. In the UAE it will be a fully rounded product offering to include al khaliji Islamic banking services, retail services, SME services as well as corporate and treasury debt capital market. Meanwhile, al khaliji's expansion plan in Qatar remains very aggressive. "Within two years, we have a branch network in Qatar, the UAE and a branch in Paris and are moving into 2009 with great momentum."
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