Malawians asked to comment on OBM, FMB merger

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The Competition and Fair Trading Commission (CFTC) has called on the general public to submit their opinions on First Merchant Bank’s (FMB) acquisition of Opportunity Bank of Malawi (OBM).

Malawi Stock Exchange listed FMB bought 100 percent shares in OBM in June but the deal, among other things, awaits CFTC’s ratification.

FMB

CFTC to conduct an assessment on banks.

According to a statement that CFTC issued on August 15, the commission is required to conduct an assessment of the likely impact of the proposed transaction on competition and economy before authorising the acquisition.

“The commission, therefore, is mandated to obtain representations from interested parties and stakeholders on their views of the transaction, in particular the proposed transaction’s effects on competition within the country.

“In view of the foregoing, the commission hereby gives notice to all interested stakeholders, including competitors, suppliers, customers and any other interested persons of the merging parties to submit written representations to the commission,” says the statement.

According to CFTC, the submissions should include comments on the developments and growth of the banking industry, any benefits arising out of the proposed transaction and more specifically the impact of the transaction on the competition and the economy in general.

FMB is a licensed commercial bank with interests in banking, asset finance, capital market and portfolio management while OBM is a licensed commercial microfinance bank targeting the economically active but marginalised Malawians living in under-served areas including semi-urban and rural areas.

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18 Comments

  1. ok let me comment….This is just a clear indication that our economy is in bad shape, it shouldn’t be like that had it been that our economy is growing. Title given to this Merger should be the one relating to our bad shape of economy. No businesses in Malawi, no jobs, low level of economic activity, banks running on small scale cannot suvive.

  2. Even if the public were to speak against the merger with valid arguments, they would serve no purpose now coz the deal is already sealed. The commission should just ensure that various stakeholders get a fair deal particularly employees.

  3. It’s only in Malawi that politics heads everything, in this case the ones making noise now that the bank has been sold are the ones that did not receive there fair amount of the deal… Leave the poor Malawians alone and fight ur battles

  4. You were supposed to ask for comments before they merger. What’s the importance of commenting while the marriage ceremony is over and the two have been pronounced husband and wife? Are you insulting the publics’ intelligence?

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