HSBC Bank Oman S.A.O.G. (MSM:HBMO) said on June 19, 2022 it would hold preliminary talks with Sohar International Bank SAOG (MSM:BKSB) after the latter last week held out the possibility of a cash-and-shares deal to merge the two lenders. In a statement HSBC Bank Oman 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.

Sohar has so far given no details of the terms of its possible offer, saying only that its board had decided to explore the possibility of a cash and shares deal, subject to various approvals. Any combination would come amid a consolidation trend in the sector across the Gulf region as profit margins have been squeezed by lower government spending, while banks try to scale up to become more competitive regionally.