MNT-Halan acquires Pakistan’s Advans Microfinance Bank

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.

The deal, signed in August 2023 and approved by the State Bank of Pakistan in October 2023, required CCP's green light and meeting certain conditions.

MNT–Halan Pak B.V., headquartered in the Netherlands, operates in Pakistan under Halan Wallet (Private) Limited and Halan Finance Limited. Backed by Dutch microlending company MNT and Egyptian fintech startup Halan, MNT-Halan aims to boost digital transactions in lending and payments.

Advans Pakistan Microfinance Bank Limited, a branch of Advans Group, focuses on microfinance banking in Pakistan since 2012, catering to underserved segments. However, it has faced losses, with accumulated losses reaching Rs 1.3 billion by September 2023.

The acquisition involves purchasing 100% of Advans Pakistan Microfinance Bank Limited from Advans S.A. SICAR. CCP's review found no market overlaps, ensuring post-merger market stability.

This approval is crucial for Pakistan's microfinance sector, vital for financial inclusion, serving 76% of borrowers and contributing to a third of agricultural advances, as per the World Bank.