The City’s dealmaking boom continued today, as the London-listed lender Bank of Georgia agreed to buy Armenian bank Ameriabank.

The Tblisi-based bank chaired by Mel Carvill will pay just over $300 million for Ameriabank, allowing it to expand into a second country.

Carvill said: “This transaction is a significant milestone for the Group and a new chapter in our strategic development. Through Ameriabank we are set to enter Armenia, one of the fastest-growing economies in the region. Ameriabank has a well-regarded and experienced management team, and I am delighted that they will stay on after the transaction is closed.

“The board believes this transaction will enable the Group to substantially increase scale and unlock additional growth opportunities as our impressive results in digitalisation, payments and customer franchise growth can be applied to Ameriabank's further development.

“This transaction is immediately earnings enhancing, using the Group's existing cash resources, with no dilution for existing shareholders. The Board unanimously views it as an excellent opportunity to create more value for our shareholders.”

It’s the latest sign that London-listed firms are in the buying mood again, after a subdued 2023 where most of the deals that did occur involved City firms being bought out by private equity. This month has already seen housebuilders Barratt and Redrow agree to merge, and a proposed deal to combine FTSE 100 packaging giants DS Smith and Mondi into a $10 billion company. Warehouse firms UK Commercial Properties REIT and Tritax Big Box have also agreed to merge.

Bank of Georgia shares are up 7% to 4,245p today, a new all-time high and valuing the FTSE 250 lender at ￡1.94 billion.