The merger of HSBC's Omani operations with Oman International Bank (OIB) has been approved, giving the global banking giant a majority interest.
HSBC Bank Middle East first announced its intention to combine with OIB, Oman's fifth-largest bank, on April 18th in an attempt to expand its presence in a "key Gulf economy".
It has now been officially approved by the Ministry of Commerce & Industry in Oman. HBSC owns 51% in the new entity, named HSBC Bank Oman, which begins operating on Wednesday.
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"With one of the largest branch networks in the Sultanate, HSBC Bank Oman will serve the needs of retail, corporate and institutional customers," the statement said.
"The successful completion of this deal allows both existing customers and residents of Oman to benefit from the HSBC Group's international network and an even wider range of banking products and services."
Just before the merger, HSBC said it injected additional capital in cash from its internal resources into its Omani division.
Simon Cooper, the Deputy Chairman and Chief Executive of HSBC Middle East and North Africa, is now Chairman of the new subsidiary.
"It is rare to get the opportunity to create a bank of such scale in a key target market," he said in a conference call back in April. "The ability to grow organically in Oman is there, but it would take an awfully long time to get to the scale of Oman International Bank."
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