MERGERS AND ACQUISITION IN PAKISTAN

MERGER

From a legal point of view, a merger is a legal consolidation of

two entities into one entity, whereas an acquisition occurs when one
entity takes ownership of another entity's stock, equity interests or
assets.

ACQUISITION

Business acquisition is the process of acquiring

a company to build on strengths or weaknesses of the
acquiring company. A merger is similar to an acquisition but
refers more strictly to combining all of the interests of both
companies into a stronger single company.

EXAMPLES:

Pakistan Stock Exchange (PSX)

The Pakistan Stock Exchange (PSX) Limited came into

existence in January 2016 when Government of Pakistan decided to
merge 3 big exchange markets (Karachi Stock Exchange, Lahore
Stock Exchange and Islamabad Stock Exchange) of the country into
one big market. Launched on January 11, 2016, aimed to help
reduce market fragmentation and create a strong case for attracting
strategic partnerships necessary for providing technological
expertise and assistance, PSX was launched.

Merging of Mybank Limited (MYBL) into Summit Bank

MyBank Limited (now merge with summit bank on 1 July 2011)

was a bank located in Karachi, Sindh, Pakistan until its merger
with Summit Bank in July 2011. Mybank Limited was incorporated in
1992 as a Commercial bank in Pakistan. Before acquisition it had 80
branches with PKR 5.303 Billion Paid Up Capital.

Trust Commercial Bank Limited

 The shareholders in Trust Investment Bank Limited (TIBL) and
those in Fidelity Investment Bank Limited (FIBL) on Tuesday, August
6, 2003 approved the scheme of amalgamation of the two banks
together with the Doha Bank Pakistan Branches.

Merging of BCCI in Al-Falah Bank Ltd

After closure of business of the Bank of Credit and Commerce

International (BCCI) by the British authorities, Pakistan was under
pressure to close down the branches of the bank operating in
Pakistan. The pressure was effectively resisted by the then SBP
authorities. The branches were initially acquired by Habib Bank Ltd.
by incorporating a subsidiary in the name of Habib Credit and
Exchange Bank Ltd. [HCEB] and later sold to an Arab investor/
renamed Al-Falah Bank Ltd.

Acquisition of IFIC Bank by National Development Leasing

Corporation

A branch of a Bangladeshi bank- IFIC Bank-operating in

Karachi was acquired by and merged in National Development
Leasing Corporation Ltd. (NDLC) which was the subsidiary of
National Development Finance Corporation (NDFC). A branch of a
French Bank in Karachi- Credit Agricole Indo-suez was also acquired
by and merged in the NDLC. After these mergers, the NDLC has
been renamed as N.I.B Bank Ltd. The NIB Bank has also been
purchased by a foreign bank.

Merger and acquisition of Bank of America, French

international Bank and Emirates International Bank by Union
Bank Ltd

The branches of Bank of America operating in Karachi/Lahore

and Islamabad and a branch of a French bank operating in Karachi-
Societe Generale the French and International Bank and the
branches of the Emirates International Bank operating in Pakistan
were acquired by and merged in Union Bank Ltd.

Acquisition of ANZ Grindlays Bank by Standard Chartered

Bank

The branches of ANZ Grindlays Bank Plc operating in Pakistan

were acquired by and merged in the Standard Chartered Bank.

Acquisition of Schon Bank Ltd. By PICIC

The Schon Bank Ltd. established in early 1990s was initially

sold to a Middle Eastern investor but was finally acquired by the
Pakistan Industrial Credit and Investment Corporation (PICIC) and
renamed as PICIC Commercial Bank Ltd. While the process of
merger of PICIC and PICIC Commercial Bank Ltd. was under process,
it is reported that NIB Bank has also been purchased by a foreign
bank.

Merger of Union Bank in Standard Chartered Bank

Union Bank Ltd. has since been purchased by the Standard

Chartered Bank and the process of merger is under way.

Acquisition of Bank of Ceylon by Dawood Bank Ltd.

A branch of Bank of Ceylon operating in Karachi has been

acquired by Dawood Bank Ltd.

Acquisition and merger of Habib Bank A.G. Zurich in

Metropolitan Bank Ltd.

Metropolitan Bank Ltd. has recently acquired the branches of

Habib Bank A.G. Zurich operating in Pakistan and the two banks
have since been merged.
Acquisition of Rupali Bank Ltd. By Arif Habib Group

A branch of a Bangladeshi Bank "Rupali Bank Ltd." has since

been acquired by Arif Habib group and the bank has been renamed
as "Arif Habib Rupali Bank Ltd".

Merger of NDFC and Mehran Bank Ltd in National Bank of

Pakistan

The NDFC and Mehran Bank Ltd. were merged in National

Bank of Pakistan after they had reached the bankruptcy.

Acquisition of Bolan Bank by Iqbal-Ali Mohammad Bank

Iqbal-Ali Mohammad Group Acquired Bolan Bank on 16 January

2004.

Merger of Credit-Agricole Indosuez-Pakistan Operations with

NDLC-IFIC Bank

The merger took place on 19 April 2004, NDLC-IFIC Bank

owned Credit-Agricole Indosues-Pakistan Operations.

Merger of Ibrahim Leasing Limited with Allied Bank Limited

On 31 May 2005 Allied Bank Limited owned Ibrahim Leasing

Limited.

Merger of First Allied Modarba Limited with and into Allied

Bank Limited

On 25th May 2006 First Allied Modarba Limited was Merged

into Allied Bank Limited.

Merger of Braclays Bank into Habib Bank Limited

The central bank has sanctioned the amalgamation of

Barclays Bank's branch operations in Pakistan with and into Habib
Bank Limited (HBL).
Merger of RBS into FABL

The Royal Bank of Scotland Limited (RBS) merged into Faysal

Bank Limited (FABL), merger took place on January 3rd, 201.

Merger of ATBL into SMBL

On 11 January 2011 Atlas Bank Limited (ATBL) merged into

Summit Bank Limited (SMBL)