MCB Sets Eyes on NIB Bank Acquisition

In a surprising move, MCB Bank has entered into talks with the management of NIB Bank with the goal of acquiring assets and taking over operations in order to secure an advantage in the competitive banking industry of Pakistan.

According to the official disclosure to Pakistan Stock Exchange shareholders, MCB Bank and the major shareholders of NIB Bank, Fullerton Financial Holdings through its wholly subsidiary Bugis Investment, are in preliminary non-binding discussions for the possible merger of NIB Bank into or with MCB Bank under the provision of section 48 of the bank companies.

The discussions will lead to due diligence of operations and share prices of both banks with the permission of State Bank of Pakistan (SBP), and permission of different regulatory bodies such as Security Exchange Commission of Pakistan (SECP), Competitive Commission of Pakistan (CCP).

NIB ​Bank ​official said that the deal is being commenced by a sponsor of the bank ​for merger of the​ two banks, which means stakeholders of NIB Bank will remain part of the MCB Bank as investors instead of selling out ​complete ​operations to MCB Bank.​

Since the discussions are non-binding between the managements of two banks, it could amount to nothing more than talk.

It seems that NIB Bank, a mid-tier banking company, decided to curtail its operations in Pakistan as it recently sold out its 100 percent subsidiary of PICIC AMC to Habib Bank’s Asset Management Company (HBL AMC) at the cost of Rs 4.1 billion.

The development coincided with the arrival of new CEO Atif Bokhari who quit United Bank Ltd to join NIB Bank in December 2015.

Surprisingly, NIB Bank’s performance improved in the outgoing year as it managed to post a profit of Rs 2.617 billion in 2015 as compared to a loss of Rs 508 million in 2014.

On the other hand, MCB Bank seems aggressive in its expansion plan for setting up a subsidiary of MCB Islamic Bank.

  • After looking into a handful of articles on your web page, I really liked.

    Tech bloggers I noted in my bookmark site list and will.

    Check back in the near future. Please visit my web

    Site as well and tell me what you think.

    • NIB Bank was huge loss making unit (showing profits by recovery of old non performing loans) which has been experimented upon by many so called Managements.
      Good news is that the Bank will be handled by efficient and consistent management. Feeling bad since another investment will get out of Pakistan….

  • entire Pakistan should be sold to Mian Mansha & Co ( +Sharifain and Isaac $) for better management or wait for Arabs to come and take over. This is the natural outcome of handing over power to business men. They would never make you realise while picking the public pockets through perfectly legal means converting their choice into law

    • Being old employee of NIB Bank I am quite happy about this so called merger (i feel its being sold out) since Mian Mansha is a very good administrator.
      Please remember that every political party has some big investors on its back including PMLN, PPP & Tehreek e Insaaf. These investors invest in party day to day expenses and get it back with profits when party is in power. Its universal phenomenon and you must get used to it because its the way democracy works.
      On the other hand, Marshal law works like Kings era…….. sometimes its too good and most of the time its too bad.

  • Ltd feature videos

    Watch more at LTD