Dubai Islamic Bank weighs acquiring smaller local rival

A visitor exits the headquarters of Dubai Islamic Bank PJSC, in Dubai, United Arab Emirates, on Thursday, July 29, 2010. Photographer: Matilde Gattoni/Bloomberg

Dubai Islamic Bank PJSC, the United Arab Emirates’ biggest Islamic lender, is considering buying its smaller rival Noor Bank PJSC, people with knowledge of the talks said.

The bank has held preliminary discussions with Dubai-based Noor Bank’s shareholders, said the people, asking not to be identified because the information is private. Discussions are at an early stage and may not lead to a deal. The acquisition would create a lender with 275 billion dirhams ($75 billion) in assets.

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