The boards of directors of the two GCC banks, Kuwait Finance House (KFH) and Bahrain’s Ahli United Bank BSC (AUB), are due to meet today (Thursday) to discuss valuation reports on a potential merger. Both will consider the studies by HSBC Holdings Plc and Credit Suisse Group AG, the lenders said in separate statements. KFH said its board of directors will meet to discuss the report of the independent global consultants HSBC and Credit Suisse on valuation studies and the proposed price for the exchange of shares between the two banks and take the necessary decision on this matter. Separately, AUB also announced that its board of directors’ meeting will be held to consider HSBC and Credit Suisse reports, which were appointed in accordance with the memorandum of understanding and information of secrecy between the two banks. In mid-2018, both banks said they had renewed discussions for a potential merger. If they conclude a deal, the merger of the two banks would be the first across the borders between two Gulf banks in recent years. Since the fourth quarter of 2018, the Kuwaiti market has been preoccupied with a possible merger of KFH, the largest Islamic bank in Kuwait, and AUB, Bahrains largest banking group, to form one of the largest banks in the Gulf region with assets of about $90 billion. In July 2018, the Kuwaiti lender invited AUB to sign a memorandum of understanding and a non-disclosure agreement to begin valuations to explore the possibility of unifying the businesses and assessing the feasibility of creating a new bank. Earlier reports indicated that the two banks could merge. A report by the EFG Hermes in early March 2018 said that the planned merger of the two banks would add KD23 million ($76.7 billion) to KFH in case it was completed. Notably, the Kuwait Investment Authority (KIA), which manages the country’s sovereign fund, owns 24.08 percent of KFH while the General Authority for Minors Affairs owns 10.48 percent, the General Secretariat of Awqaf owns 7.3 percent and the General Organization for Social Insurance owns 6.19 percent.