HSBC Oman, Sohar are approved to merge

HSBC Bank Oman has received the green light from the Central Bank of Oman for the merger of its operations with Sohar International Bank. This merger, first announced in November 2022, will result in the transfer of all assets and liabilities of HSBC Oman to Sohar International. Upon completion, which is expected in the latter half of 2023, HSBC Oman will no longer exist and all of its shares will be cancelled. The merger still requires approval from other regulatory bodies and the shareholders of both entities at their extraordinary general meetings.

HSBC has been present in Oman since 1948 and the merger will conclude the combination of HSBC Bank Middle East’s operations with Oman International Bank, which formed HSBC Oman in 2012. Following the merger, HSBC Bank Middle East intends to establish a new wholly-owned branch in Oman.

The approval of the merger comes as HSBC is undergoing a global review of its operations and facing pressure from its largest shareholder, Ping An, to divide its Asian and Western divisions for improved earnings. The bank has recently announced its review of the consumer banking business of its New Zealand operations and its agreement to sell its Canadian unit for $10bn to the Royal Bank of Canada.