Oman's Ministry of Commerce and Industry has halted the merger of HSBC Oman and Oman International Bank (OIB) following an objection raised by an India-based businessman.
The order (seen by Times of Oman) issued on May 16 by the Ministry of Commerce and Industry, Directorate-General of Commerce in Muscat, states that according to Article 13 bis 8 of Commercial Companies Law 4/74, the merger has been suspended unless the objection raised by the businessman is settled or withdrawn by him. Another option is that the said objection is overruled by a court order.
Meanwhile, when contacted, HSBC declined to comment on the matter.
We need to find out about the objection raised and why it has been upheld.
ReplyDeleteI feel that this objection must have great gravity to halt such a large merger between Giant HSBC and OIB.