CCP Clears Merger of Global Haly Development into Bank Makramah

Fri Oct 03 2025
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Key Points

  • Competition Commission approves merger under Competition Act 2010
  • Global Haly Development to be dissolved; Bank Makramah to survive
  • Review finds no overlaps as GH Development outside banking sector
  • Transaction aimed at strengthening Bank Makramah’s capital base

ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the merger of M/s Global Haly Development Limited with and into M/s Bank Makramah Limited under a Scheme of Arrangement, saying the combination would not harm competition in the banking sector.

According to a CCP statement issued on Friday, the proposed transaction was filed under Section 11 of the Competition Act, 2010, and reviewed in light of the Competition (Merger Control) Regulations, 2016. The deal involves the amalgamation of Global Haly Development, a public limited company engaged in real estate and infrastructure development, into Bank Makramah, a listed commercial bank.

As part of the arrangement, Bank Makramah will issue ordinary shares to the shareholders of Global Haly Development. Following completion, Bank Makramah will remain the surviving entity while Global Haly Development will stand dissolved.

The regulator conducted a Phase I review and defined the relevant market as commercial banking within Pakistan. Referring to State Bank of Pakistan (SBP) data, the CCP noted that Bank Makramah holds only a modest market share in the sector. Likewise, Global Haly Development has no banking operations, resulting in no horizontal overlaps.

The Commission concluded that the merger is unlikely to substantially lessen competition or create a dominant position in the relevant market. The transaction is primarily aimed at helping Bank Makramah meet minimum capital requirements and enhance its operational capacity.

Banking sector consolidation trend

Analysts note that the transaction aligned with a broader trend of consolidation in Pakistan’s financial sector as smaller and mid-tier banks seek to shore up their capital adequacy ratios. The SBP has tightened capital requirements in recent years to strengthen financial stability, prompting weaker banks to explore mergers or strategic investments.

Financial media have reported that the SBP has consistently pushed for higher minimum capital and capital adequacy ratios, bringing Pakistan’s regulatory framework closer to Basel III standards. “This merger reflects ongoing efforts to ensure banks are adequately capitalised and competitive in a tightening regulatory environment,” one Karachi-based banking analyst told Business Recorder.

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