08 October 2011
MUSCAT - Oman International Bank (OIB), the country's fourth largest bank, announced on Thursday that it is in discussions with HSBC Holdings plc (HSBC) regarding the possible merger of HSBC's Oman operations with those of OIB. "These discussions are ongoing and no decision has been made as to whether to recommend proceeding with any transaction. A further announcement will be made if or when appropriate," the bank stated in a disclosure notification to the Muscat Securities Market (MSM) at the weekend.
Reuters described the move as part of the global banking giant's efforts to streamline its Middle East presence. The news agency quoted an unnamed senior OIB official as saying that "OIB is negotiating the acquisition of HSBC's operations" in Oman. It said a financial package offered by OIB was currently being considered by HSBC.
Reuters also quoted a spokesperson for the British lender as maintaining that HSBC had no plans to exit from Oman. "HSBC has been in Oman since 1948, and has absolutely no plans to exit the country. We are in early stage negotiations over a possible merger of our operations in Oman with those of OIB," the official is quoted as stating. The merger move comes on the heels of a recent announcement by OIB that it had launched a "comprehensive strategy review" to best position the bank's business model for the next phase of its development.
In a disclosure notification to the Muscat Securities Market (MSM) last July, OIB said the strategic review was dictated by a desire to keep pace with the ever changing banking environment and technology, both at the local and international level. "This strategic review will evaluate potential operating models for the future and will consider whether the bank should remain independent, whether it should form a strategic alliance with another leading financial institution or whether it should pursue other different forms of co-operation," OIB stated.
A primary aim of this strategic review, it said, is to enhance the bank's current business model and aspire to internationally acceptable standards in all areas including credit, market and operational risk management; operations and technology; and customer product propositions. "It is by these means that we will improve the value that we bring to all of our stakeholders being shareholders, customers and staff," the statement added.
Established in 1984, OIB's assets totalled around $2.75 billion at end 2010. The bank has the second largest branch network in Oman with 84 branches.
OIB offers a wide range of products and services to companies and individuals. It is one of the largest issuers of credit cards in the country. Customers include multinational enterprises active in Oman and the Gulf as well as leading local contracting, manufacturing and trading companies. The bank has participated in project finance activities in Oman in the power, water, oil, gas and petrochemicals sectors.
MUSCAT - Oman International Bank (OIB), the country's fourth largest bank, announced on Thursday that it is in discussions with HSBC Holdings plc (HSBC) regarding the possible merger of HSBC's Oman operations with those of OIB. "These discussions are ongoing and no decision has been made as to whether to recommend proceeding with any transaction. A further announcement will be made if or when appropriate," the bank stated in a disclosure notification to the Muscat Securities Market (MSM) at the weekend.
Reuters described the move as part of the global banking giant's efforts to streamline its Middle East presence. The news agency quoted an unnamed senior OIB official as saying that "OIB is negotiating the acquisition of HSBC's operations" in Oman. It said a financial package offered by OIB was currently being considered by HSBC.
Reuters also quoted a spokesperson for the British lender as maintaining that HSBC had no plans to exit from Oman. "HSBC has been in Oman since 1948, and has absolutely no plans to exit the country. We are in early stage negotiations over a possible merger of our operations in Oman with those of OIB," the official is quoted as stating. The merger move comes on the heels of a recent announcement by OIB that it had launched a "comprehensive strategy review" to best position the bank's business model for the next phase of its development.
In a disclosure notification to the Muscat Securities Market (MSM) last July, OIB said the strategic review was dictated by a desire to keep pace with the ever changing banking environment and technology, both at the local and international level. "This strategic review will evaluate potential operating models for the future and will consider whether the bank should remain independent, whether it should form a strategic alliance with another leading financial institution or whether it should pursue other different forms of co-operation," OIB stated.
A primary aim of this strategic review, it said, is to enhance the bank's current business model and aspire to internationally acceptable standards in all areas including credit, market and operational risk management; operations and technology; and customer product propositions. "It is by these means that we will improve the value that we bring to all of our stakeholders being shareholders, customers and staff," the statement added.
Established in 1984, OIB's assets totalled around $2.75 billion at end 2010. The bank has the second largest branch network in Oman with 84 branches.
OIB offers a wide range of products and services to companies and individuals. It is one of the largest issuers of credit cards in the country. Customers include multinational enterprises active in Oman and the Gulf as well as leading local contracting, manufacturing and trading companies. The bank has participated in project finance activities in Oman in the power, water, oil, gas and petrochemicals sectors.
© Oman Daily Observer 2011
