HSBC Bank Oman SAOG and Sohar International Bank SAOG have officially announced their plan to merge, following the approval of both banks' Boards of Directors. The proposed merger, subject to regulatory and shareholder approval, aims to establish a more robust and competitive banking institution in Oman.
Anticipated to be a transformative move, the merger will bring together the strengths of HSBC Oman and Sohar International, resulting in an expanded asset base, a wider array of products and services, and an extensive network of branches and ATMs. The unified bank will be better equipped to meet the diverse needs of its customers and contribute to the growth of the Omani economy.
According to the terms outlined in the merger agreement, all assets and liabilities of HSBC Oman will be transferred to Sohar International. As part of the transaction, HSBC Oman shareholders will be granted shares in Sohar International based on a determined ratio, with specifics to be disclosed at a later date.
The merger is expected to be finalized in the second half of 2023. During the transition period, both HSBC Oman and Sohar International will continue their operations independently, ensuring uninterrupted services for their respective customers.
Customers of HSBC Oman and Sohar International have been assured both banks will maintain their regular operations and services until the merger process is completed. Once the merger is finalized, customers will benefit from an expanded range of offerings provided by the unified bank. Additionally, they will gain access to a larger asset base and a wider network of branches and ATMs, enhancing convenience and service accessibility.
HSBC Oman shareholders will have the opportunity to vote on the merger during an upcoming extraordinary general meeting (EGM). Likewise, Sohar International shareholders will participate in their own EGM to cast their votes.
Detailed information concerning the EGMs will be announced separately in adherence to applicable legal and regulatory requirements.