Bank Muscat has sold its Oman-based brokerage business to Oman’s brokerage firm Gulf Baader Capital Markets.
The lender said in a statement that the move was triggered owing to an ongoing review of strategic alternatives and operational priorities.
According to the statement, Bank Muscat brokerage will stop operation from February 10 of this year, though the transaction value has not been disclosed yet.
According to a separate statement issued by Gulf Baader Capital Markets, "The acquisition has been made as part of GBCM’s strategy to further reinforce its dominant position in the institutional and corporate brokerage business and strengthen its position in the retail brokerage business."
The statement added, "The company has received the necessary approval from Capital Market Authority for this acquisition and the process of opening of brokerage accounts of erstwhile customers of Bank Muscat is expected to be completed in the first quarter of 2015."
Bank Muscat reportedly comprises a market share of 8.8% in stock broking business, and Gulf Baader comprises a share of 10.5% for the first eleven months of 2014.