Central bank says it has given the green light to merger with Oman International Bank
Oman's central bank has approved the planned merger of HSBC Holdings' operations in the tiny Gulf Arab state with local lender Oman International Bank, the central bank said on Sunday.
Both HSBC and OIB said in October last year they were in talks about merging their operations in Oman, without providing details on the structure of the transaction.
"The board has approved, in principle, the merger between Oman International Bank and HSBC Bank Middle East's Oman branches provided the merger does not conflict with local laws," the statement from the central bank said.
Oman opened its doors to Islamic banking and let conventional lenders run sharia-compliant operations in May.
HSBC has had a presence in Oman since 1948. OIB has a market cap of around $700m, according to Reuters data.
This will not be the last merger for HSBC and it is clear indication that another BCCI story is getting cooked , soon we will hear another mergers for the bank and the dissolving of his middle east operation .
OIB was created out of HSBC a few year ago, when foreign banks were asked to reduce their branches. OIB was formed around that time and took over most of the HSBC branches. Today, it's sad that HSBC will be merging with OIB.
In recent years, HSBC service level has gone down, but then OIB is worst. In Oman, today the worst bank to deal with is OIB, since they don't care about its customers! Because of their extensive and large branch network, OIB has a good customer base, mostly in personal banking. OIB rates very poor amongst the business houses!
Wonder if this move of merger between HSBC and OIB will benefit the customers or is Oman creating another ugly giant in the banking sector!