The subsidiary of United Bank Limited, UBL Currency Exchange has merged with Wall Street Exchange Company after the approval of the Competition Commission of Pakistan (CCP).
M/s UCE, a Pakistani private limited company recently incorporated as a currency Exchange Company, is a wholly-owned subsidiary of United Bank Limited.
Whereas, WSE is a private limited company that started its operations in December 2003 after getting a license from the State Bank of Pakistan.
M/s WSE’s prime business involves remittance-related facilitation to individuals and corporate entities. The approved transaction entails the acquisition of certain assets of M/s Wall Street Exchange Company (Pvt.) Ltd (WSE) by M/s UBL Currency Exchange (Pvt.) Ltd (UCE) pursuant to a Letter of Intent (LOI) and later through an Asset Purchase Arrangement (APA).
The Competition Commission of Pakistan (CCP) has greenlit a merger within the cross-border remittances and currency exchange business. In terms of the proposed transaction, M/s UCE intends to acquire certain assets of M/s WSE involving immovable properties, employees, commercial agreements, and essential assets ranging from computer hardware to equipment and vehicles.
The CCP’s Phase I competition assessment identified ‘Currency Exchange and Money Transfer’ as the relevant product market. CCP’s analysis further confirmed that WSE has distinct market shares in the Currency Exchange and Money Transfer markets. However, these market shares will be renewed as M/s UCE will take a fresh start in the relevant markets.
It is pertinent to mention that the transaction is in line with the regulatory mandate from the State Bank, aiming to regulate the currency exchange sector and stabilize exchange rates, ensuring a balanced approach to market competitiveness and integrity.
Last year, the banking regulator took a series of measures to control the foreign exchange business. The watchdog not only suspended operations of various currency exchange companies on violations, but it also came up with a plan that included the establishment of new currency exchanges by banks, acquisitions, and mergers of currency exchanges.
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