The document discusses mergers and acquisitions that have occurred among banks in Pakistan. It provides numerous examples of Pakistani banks that have merged or been acquired by other banks both domestic and foreign. Key mergers and acquisitions mentioned include the Pakistan Stock Exchange merging three stock exchanges into one in 2016, MyBank Limited merging with Summit Bank in 2011, and the acquisition of ANZ Grindlays Bank by Standard Chartered Bank.
Description originale:
Best Examples of Merger and Acquisition in Pakistan
The document discusses mergers and acquisitions that have occurred among banks in Pakistan. It provides numerous examples of Pakistani banks that have merged or been acquired by other banks both domestic and foreign. Key mergers and acquisitions mentioned include the Pakistan Stock Exchange merging three stock exchanges into one in 2016, MyBank Limited merging with Summit Bank in 2011, and the acquisition of ANZ Grindlays Bank by Standard Chartered Bank.
The document discusses mergers and acquisitions that have occurred among banks in Pakistan. It provides numerous examples of Pakistani banks that have merged or been acquired by other banks both domestic and foreign. Key mergers and acquisitions mentioned include the Pakistan Stock Exchange merging three stock exchanges into one in 2016, MyBank Limited merging with Summit Bank in 2011, and the acquisition of ANZ Grindlays Bank by Standard Chartered Bank.
From a legal point of view, a merger is a legal consolidation of
two entities into one entity, whereas an acquisition occurs when one entity takes ownership of another entity's stock, equity interests or assets.
ACQUISITION
Business acquisition is the process of acquiring
a company to build on strengths or weaknesses of the acquiring company. A merger is similar to an acquisition but refers more strictly to combining all of the interests of both companies into a stronger single company.
EXAMPLES:
Pakistan Stock Exchange (PSX)
The Pakistan Stock Exchange (PSX) Limited came into
existence in January 2016 when Government of Pakistan decided to merge 3 big exchange markets (Karachi Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange) of the country into one big market. Launched on January 11, 2016, aimed to help reduce market fragmentation and create a strong case for attracting strategic partnerships necessary for providing technological expertise and assistance, PSX was launched.
Merging of Mybank Limited (MYBL) into Summit Bank
MyBank Limited (now merge with summit bank on 1 July 2011)
was a bank located in Karachi, Sindh, Pakistan until its merger with Summit Bank in July 2011. Mybank Limited was incorporated in 1992 as a Commercial bank in Pakistan. Before acquisition it had 80 branches with PKR 5.303 Billion Paid Up Capital.
Trust Commercial Bank Limited
The shareholders in Trust Investment Bank Limited (TIBL) and those in Fidelity Investment Bank Limited (FIBL) on Tuesday, August 6, 2003 approved the scheme of amalgamation of the two banks together with the Doha Bank Pakistan Branches.
Merging of BCCI in Al-Falah Bank Ltd
After closure of business of the Bank of Credit and Commerce
International (BCCI) by the British authorities, Pakistan was under pressure to close down the branches of the bank operating in Pakistan. The pressure was effectively resisted by the then SBP authorities. The branches were initially acquired by Habib Bank Ltd. by incorporating a subsidiary in the name of Habib Credit and Exchange Bank Ltd. [HCEB] and later sold to an Arab investor/ renamed Al-Falah Bank Ltd.
Acquisition of IFIC Bank by National Development Leasing
Corporation
A branch of a Bangladeshi bank- IFIC Bank-operating in
Karachi was acquired by and merged in National Development Leasing Corporation Ltd. (NDLC) which was the subsidiary of National Development Finance Corporation (NDFC). A branch of a French Bank in Karachi- Credit Agricole Indo-suez was also acquired by and merged in the NDLC. After these mergers, the NDLC has been renamed as N.I.B Bank Ltd. The NIB Bank has also been purchased by a foreign bank.
Merger and acquisition of Bank of America, French
international Bank and Emirates International Bank by Union Bank Ltd
The branches of Bank of America operating in Karachi/Lahore
and Islamabad and a branch of a French bank operating in Karachi- Societe Generale the French and International Bank and the branches of the Emirates International Bank operating in Pakistan were acquired by and merged in Union Bank Ltd.
Acquisition of ANZ Grindlays Bank by Standard Chartered
Bank
The branches of ANZ Grindlays Bank Plc operating in Pakistan
were acquired by and merged in the Standard Chartered Bank.
Acquisition of Schon Bank Ltd. By PICIC
The Schon Bank Ltd. established in early 1990s was initially
sold to a Middle Eastern investor but was finally acquired by the Pakistan Industrial Credit and Investment Corporation (PICIC) and renamed as PICIC Commercial Bank Ltd. While the process of merger of PICIC and PICIC Commercial Bank Ltd. was under process, it is reported that NIB Bank has also been purchased by a foreign bank.
Merger of Union Bank in Standard Chartered Bank
Union Bank Ltd. has since been purchased by the Standard
Chartered Bank and the process of merger is under way.
Acquisition of Bank of Ceylon by Dawood Bank Ltd.
A branch of Bank of Ceylon operating in Karachi has been
acquired by Dawood Bank Ltd.
Acquisition and merger of Habib Bank A.G. Zurich in
Metropolitan Bank Ltd.
Metropolitan Bank Ltd. has recently acquired the branches of
Habib Bank A.G. Zurich operating in Pakistan and the two banks have since been merged. Acquisition of Rupali Bank Ltd. By Arif Habib Group
A branch of a Bangladeshi Bank "Rupali Bank Ltd." has since
been acquired by Arif Habib group and the bank has been renamed as "Arif Habib Rupali Bank Ltd".
Merger of NDFC and Mehran Bank Ltd in National Bank of
Pakistan
The NDFC and Mehran Bank Ltd. were merged in National
Bank of Pakistan after they had reached the bankruptcy.
Acquisition of Bolan Bank by Iqbal-Ali Mohammad Bank
Iqbal-Ali Mohammad Group Acquired Bolan Bank on 16 January
2004.
Merger of Credit-Agricole Indosuez-Pakistan Operations with
NDLC-IFIC Bank
The merger took place on 19 April 2004, NDLC-IFIC Bank