Maybank gets approval for investment in MCB

KARACHI - Competition Commission of Pakistan on Tuesday approved Malaysia's Maybank for investment in MCB Bank up to 20 per cent of shares. It may be recalled that on May 5th 2008, MCB had announced that Maybank has entered into an agreement (with shareholders of MCB) to invest/acquire 20 percent of MCB and to form a strategic partnership. Maybank, pursuant to this agreement sought approval from Competition Commission of Pakistan (CCP) for this investment. The CCP moved very quickly and after reviewing the application by Maybank has issued no objection on Tuesday, clearing the proposed acquisition of 20 percent shares of MCB under the Competition Ordinance, 2007. On completion of this transaction, this will be the largest private sector foreign investment in Pakistan's banking sector. This investment in addition to creating a strategic partnership which would be mutually beneficial to Maybank and MCB, would also result in much needed increase in foreign exchange reserves of Pakistan by US $ 689 million during this fiscal year and a further US $ 250 million in the next financial year.