Bahrain economic performance slowed down in the year 2009 and 2010, after enjoying economic prosperity. The slowdown tends to affect the finance sector and constructions. The political unrest in 2011 led to decline of merger and acquisition, as well as equity. The most targeted sector in Bahrain was the financial sector because it accounted to approximately 34% of the country activities. Despite the adverse economic climate in the region and political issues, various, merger and acquisition were completed in the region. For example, the merger between Al Salam Bank Bahrain BSC and Bahraini Saudi Bank BSc (Coyle, 2000). The merger talks between the two banking institutions began in the year 2009, and by 2012, the entire process of merger was complete. After the merger the operations of the banks were incorporated together, and the employees of the banks were fledged fully to the Al Slam Bank.
The political risk in Bahrain is very high, but the greater focus on infrastructure and government spending tend to overturn the risk. The legal framework plays a crucial role in setting down laws that govern the merger and acquisition process (Oxford Business Group, 2007). The Bahrain Commercial Companies Law is essential since it sets the procedures and rules that are applied during domestic mergers. On the same note, Bahrain is also involved in foreign merger and acquisition transactions.
Bahrain is overshadowed by the neighboring countries economic development, but they still take a crucial role in merger and acquisition in the region (Coyle, 2000). Some of the strong economies include United Arab Emirates and Saudi Arabia. Other crucial merger and acquisitions in the region include the acquisition by Bahrain Investcorp of Coral Palm Plaza as a joint venture with Lincoln Equities. In the general perspective, merger and acquisition process in Bahrain play a crucial role in financial development and advancement of financial systems
References
Coyle, B. (2000). Mergers and acquisitions. Chicago: Glenlake Pub. Co.
Oxford Business Group. (2007). The Report: Emerging Bahrain 2007. London: Oxford Business Group.
