United Gulf Holding Company B.S.C. (BAX:UGH) signed an agreement to acquire a 51.8% stake in Bank of Baghdad from Burgan Bank K.P.S.C. (KWSE:BURG) on January 6, 2020. The transaction has been funded by medium term debt of $55 million. The transaction is subject to regulatory approval by Central Bank of Iraq and other conditions precedent.

The transaction is expected to complete by March 31, 2020. As of January 7, 2020, The Central Bank of Iraq approved the transaction for the acquisition of Bank of Baghdad. The acquisition is expected to be profit accretive going forward.