Audi merger sets the stage

The merger of Banque Audi and Banque Saradar was the best thing to happen to the Lebanese banking sector for many years and the biggest merger/acquisition since the Byblos-Banque Beyrouth pour le Commerce and Bank of Beirut-Beirut Riyad Bank deals in 1995 and 2001, respectively. Although the banking sector has been consolidating for the last ten years, albeit at a slow pace, this consolidation has mainly been characterized by acquisitions of weak smaller banks by larger institutions. The Audi-Saradar merger, on the other hand, has produced the first really institutionalized banking group in Lebanon with very little control by one single family and the widespread dilution of responsibilities and decisions among a complementary and relatively efficient management team. With such an institutionalization of ownership, the Audi-Saradar venture is likely to have positive developments on the overall competitive environment in Lebanon. It is also expected to influence other banking groups to