Meezan Bank has reached an agreement to acquire HSBC's operations in Pakistan, aiming to convert them into Shariah-compliant banking services.

Information on the Target

Meezan Bank, recognized as the first and largest Islamic bank in Pakistan, has recently entered into an agreement with HSBC Bank Middle East (HBME), an indirect wholly-owned subsidiary of HSBC Holdings, to acquire HSBC's banking operations in Pakistan. The acquisition is set to be executed through a process of amalgamation, anticipated to be finalized in the latter half of 2014, pending regulatory and shareholder approvals.

As part of this acquisition, Meezan Bank intends to transform HSBC Pakistan's operations into Shariah-compliant banking services, ensuring that customers experience seamless banking throughout the transition. The Bank's Shariah Supervisory Board has thoroughly reviewed and approved this transaction. Notably, this action marks the second acquisition by Meezan Bank of a foreign bank's operations in Pakistan, following their successful conversion of Society Generale's Pakistan operations to Shariah-compliant offerings back in 2002.

Industry Overview in Pakistan

The Islamic banking sector in Pakistan has witnessed substantial growth over the past two decades, making notable strides in financial inclusion and customer outreach. With increasing recognition of Shariah-compliant financial solutions, Islamic banks, including Meezan Bank