Muscat – The Central Bank of Oman (CBO) has approved the proposed merger between Sohar International Bank and HSBC Bank Oman, the two lenders informed the Muscat Stock Exchange on Sunday.

Earlier 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.

‘Sohar International Bank would like to announce that it has received the approval from the Central Bank of Oman for it proposed merger with HSBC Oman,’ Sohar International said in its disclosure to the Muscat Stock Exchange.

In a separate disclosure to the local bourse, HSBC Oman on Sunday also confirmed receiving central bank’s approval for its proposed merger with Sohar International.

The merger – which is still subject to approval from other relevant regulatory bodies as well as from the respective shareholders of the two entities at their extraordinary general meetings – is expected to complete in the second half of 2023, Sohar International and HSBC Oman said.

‘Further announcements on any material developments will be made as required,’ the banks informed in their disclosures.

As per the banks’ previous announcement and pursuant to their binding merger agreement, the two banks will merge and all of the assets and liabilities of HSBC Oman will be transferred to Sohar International. On completion of the merger, HSBC Oman will cease to exist as a legal entity and its shares will be cancelled.

Earlier both banks clarified that they will remain independent and continue to operate a business as usual service until the merger has completed.

Total assets of Sohar International stood at RO4.131bn as of December 31, 2022, while HSBC Oman’s total assets were at RO2.241bn at the end of last year, according to banks’ financial reports.