Competition Commission of Pakistan approves acquisition, heralding significant development in financial landscape
In a pivotal move for Pakistanʼs financial sector, Dutch-Egyptian company MNT-Halan has acquired Advans Pakistan Microfinance Bank Ltd, as authorized by the Competition Commission of Pakistan (CCP).
MNT-Halan Pak B.V., a holding company headquartered in the Netherlands, completed the acquisition of Advans Pakistan Microfinance Bank Ltd, a key player in Pakistanʼs microfinance banking sector. The acquisition, which received approval from the CCP, represents a noteworthy development in the country’s financial landscape.
Operating in Pakistan through its subsidiaries Halan Wallet (Private) Limited and Halan Finance Limited, MNT-Halan purchased the entire shareholding of Advans Pakistan Microfinance Bank Ltd from Advans S.A SICAR, a Luxembourg-based financial services company.
The CCPʼs endorsement of the acquisition followed a comprehensive review of the merger application, determining that there are no overlaps between the merging entities, thereby ensuring that market conditions will remain unchanged post-acquisition.
Significance of acquisition for Pakistanʼs microfinance banking sector
A spokesperson for the CCP emphasized the significance of the acquisition for Pakistan’s microfinance banking sector, stressing its critical role in the country’s financial inclusion agenda.
According to the World Bank, the sector currently serves 76% of all borrowers in the financial domain and contributes approximately a third of all outstanding agricultural advances in Pakistan.
The approval of this acquisition is anticipated to introduce new technologies, innovative products, and enhanced services to Pakistan’s microfinance banking sector, offering benefits to both the industry and consumers alike.
Foreign investment in this sector is viewed as a positive step towards bolstering financial services and expanding access to financial resources for underserved communities.
