MCB bank's plan to buy RBS Pakistan assets lapse on time overrun
02 Jan 2010
Pakistan's MCB Bank has said its deal to buy the Royal Bank of Scotland's Pakistan operations has lapsed as it failed to get regulatory approvals.
In a letter written to the Karachi Stock Exchange (KSE) on Friday, the bank said, as part of the sales purchase agreement (SPA) signed with RBS, the transaction had to be closed by 31 December.
"Some of the regulatory approvals were not accorded and, therefore, closing did not occur by 31 December 2009, and accordingly the SPA stands lapsed," it said in the letter.
In August, RBS had entered into an agreement with MCB, Pakistan's largest privately-owned bank by assets, to sell its 99.37-per cent stake in RBS Pakistan for $87.4 million (See: RBS sells Pakistan operations to MCB Bank)
The KSE, which normally operates on the first day of the year, was closed on Friday due to violence and bomb blasts.
The RBS acquisition would have given MCB an incremental branch network of 79 branches (including three Islamic banking branches) to add to its existing 1,026 branches.
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