– The Competition Commission of Pakistan (CCP) has approved the acquisition of Advans Pakistan Microfinance Bank Limited by MNT–Halan Pak B.V., a Dutch-Egyptian financial player.

– MNT–Halan Pak B.V., backed by MNT and Halan, signed the acquisition agreement in August 2023, receiving State Bank of Pakistan (SBP) approval in October 2023 after meeting specified conditions.

– Advans Pakistan Microfinance Bank Limited, a subsidiary of the Advans Group, faced financial challenges, reporting losses in 2022 and 2023, leading to its acquisition by MNT–Halan Pak B.V.

The Competition Commission of Pakistan (CCP) approved the acquisition of Advans Pakistan Microfinance Bank Limited by MNT–Halan Pak B.V., a holding company representing a Dutch-Egyptian financial market player.

The agreement for the acquisition was signed in August 2023, with subsequent approval from the State Bank of Pakistan (SBP) in October 2023. Before finalization, the deal awaited clearance from the CCP and the fulfillment of certain conditions.

MNT–Halan Pak B.V., headquartered in the Netherlands, oversees subsidiaries in Pakistan under the banners of Halan Wallet (Private) Limited and Halan Finance Limited. This holding entity, backed by Dutch microlending firm MNT and Egyptian fintech startup Halan, emerged from a share swap pact in 2021, aiming to enhance digital transactions in lending and payments.

On the other hand, Advans Pakistan Microfinance Bank Limited operates as part of the Advans Group, a prominent international microfinance entity present in nine developing nations. 

The bank obtained its license from the State Bank of Pakistan in 2012 to operate as a microfinance bank in the province of Sindh, focusing on serving the underprivileged segments of society, as mandated by the Microfinance Institutions Ordinance, 2001.

However, Advans Pakistan faced financial challenges, reporting losses of Rs 102 million in 2022 and Rs 256 million in 2023, contrasting with a profit of Rs 53.8 million in 2021. By September 2023, its accumulated losses amounted to Rs 1.3 billion, posing a significant setback for the Advans group.

The acquisition involves the purchase of 100% of Advans Pakistan Microfinance Bank Limited from Advans S.A. SICAR, the Luxembourg-based financial services arm of Advans. The CCP, after a thorough assessment, concluded that the merger would not create any market overlaps, preserving the market dynamics post-merger.

This approval carries considerable implications for Pakistan’s microfinance banking sector, essential for the country’s financial inclusion efforts. According to the World Bank, this sector serves 76% of all financial borrowers and contributes substantially to agricultural advances.