MNT-Halan Pak B.V. Cleared for Acquisition of Advans Pakistan Microfinance Bank
The Competition Commission of Pakistan (CCP) has granted approval for the acquisition deal between Advans Pakistan Microfinance Bank Limited and MNT–Halan Pak B.V., a holding company representing a Dutch-Egyptian financial market entity.
After the signing of the share purchase agreement in August 2023, the State Bank of Pakistan (SBP) provided its consent in October of the same year. However, the finalization of the deal hinged upon meeting specific conditions outlined by the CCP.
Headquartered in the Netherlands, MNT–Halan Pak B.V. operates subsidiaries in Pakistan under the banners of Halan Wallet (Private) Limited and Halan Finance Limited. The conglomerate is a collaborative effort between Dutch microlending firm MNT and Egyptian fintech startup Halan. This alliance, established through a share swap agreement in 2021, birthed MNT-Halan, with a mission to propel digital transactions within the lending and payments sectors.
In contrast, Advans Pakistan Microfinance Bank Limited stands as a prominent player in Pakistan's microfinance banking arena. As a branch of the Advans group, a renowned international microfinance conglomerate operating in nine developing nations, Advans Pakistan holds significant influence in the local financial landscape.
The acquisition involves the purchase of Advans Pakistan Microfinance Bank Limited's entire shareholding from Advans S.A SICAR, the Luxembourg-based financial services firm of the Advans group. Following a meticulous review, the CCP concluded that there are no overlaps between the merging entities, ensuring market stability post-merger.
This approval carries significant implications for Pakistan's microfinance banking sector, which plays a crucial role in the nation's financial inclusion agenda. According to the World Bank, the sector serves 76% of all borrowers and contributes substantially to agricultural financing, highlighting its importance in driving economic growth and inclusion efforts.
Source: Profit
