Mubasher: Al Baraka Bank (Pakistan) announced on Monday it will merge with Pakistan's Burj Bank to create a new institution with assets totaling more than $1.1 billion.

The merger is expected to take effect in the fourth quarter of 2016, Al Baraka will be the major shareholder in the merged bank, according to a bourse filing.

The merger was approved by the shareholders of the two banks during their ordinary general meetings held on 18 and 22 August.

The shareholders of Burj Bank approved receiving one Al Baraka Bank (Pakistan) share for every 1.7 shares in Burj, according to the dank’s statement to the Bahrain Bourse.