Muscat – Sohar International Bank and HSBC Bank Oman on Tuesday announced that their respective boards of directors have approved the proposed merger between two banks.

Both banks’ boards have called for extraordinary general meetings (EGMs) of their respective shareholders to consider the merger.

In November 2022, Sohar International and HSBC Oman entered into a binding merger agreement, under which the two banks agreed to take necessary steps to implement the merger by incorporation. The merger discussions between two banks initially started in June 2022.

As per the binding agreement, all the assets and liabilities of HSBC Oman will be transferred to Sohar International and HSBC Oman will be dissolved upon completion of the merger.

The Central Bank of Oman (CBO) approved the proposed merger between Sohar International Bank and HSBC Bank Oman in February this year.

‘Both boards of directors (Sohar International and HSBC Oman) believe that the merger is in the best interests of their respective shareholders. At the forthcoming EGMs, explanatory statements encompassing the terms of the merger will be presented, along with a recommendation that shareholders vote in favour of the merger and each of the EGM resolutions,’ the two banks said in a press statement released on Tuesday.

While the merger is subject to the approval of the relevant regulatory bodies, the immediate impact on banks’ customers will be unaffected by Tuesday’s announcement, the statement said.

Both banks will continue to operate independently, providing a business as usual service until the merger is completed. Further details regarding the date, time, and agenda of the EGM will be announced separately in due course, in accordance with applicable regulation, the banks said.

Sohar International and HSBC Oman said they remain committed to transparency and will continue to update shareholders, customers, and stakeholders as the merger progresses.

In addition to the approval of the respective shareholders of HSBC Oman and Sohar International, the merger remains subject to the approval of relevant regulatory bodies.

Total assets of Sohar International stood at RO4.632bn as of March 31, 2023, while HSBC Oman’s total assets were at RO2.435bn at the end of the first quarter, according to banks’ financial reports.