March 15, 2024 (MLN): The Competition Commission of Pakistan (CCP) has approved the acquisition of Advans Pakistan Microfinance Bank Limited by a Dutch-based holding company, MNT–Halan Pak B.V., as per a press release issued by the commission on Thursday.
This transaction marks a significant development in the microfinance banking sector of Pakistan.
MNT – Halan Pak B.V. is a holding company incorporated in the Netherlands, with a presence in Pakistan through its subsidiaries, Halan Wallet (Private) Limited and Halan Finance Limited.
On the other hand, Advans Pakistan Microfinance Bank Limited is a public limited company operating in the microfinance banking sector of Pakistan.
The acquisition involves the purchase of 100% shareholding of Advans Pakistan Microfinance Bank Limited from Advans S.A SICAR, a Luxembourg-based financial services company.
Following a thorough review of the pre-merger application, the CCP determined that there are no overlaps between the merging parties, and the market conditions will remain unchanged post-merger.
The approval of this acquisition is significant for Pakistan's microfinance banking sector, which plays a crucial role in the country's financial inclusion agenda.
According to the World Bank, the sector serves 76% of all borrowers from the financial sector and accounts for approximately a third of all outstanding agriculture advances.
Foreign investment in this sector is expected to bring in new technologies, innovative products, and improved services, benefiting both the industry and the consumers.
