Malawi’s Competition and Fair Trading Commission says it is ok for FDH Financial Holding to purchase Malawi Saving Bank.
The body’s executive director Charlotee Wezi Malonda said in a statement released on Wednesday: “The Commission found that the transaction may not likely result in substantial lessening of competition in the banking and foreign exchange trading markets.”
The statement further says the purchase of the bank will help it not close as well as save jobs.
However the commission said the approval is based on among other things that existing MSB staff be maintained at the same or improved terms and condition of service and should there be need for retrenchment, all redundancy and termination costs shall be paid accordingly and that all existing branches of MSB and FDH Bank be maintained.
MSB was facing statutory closure for failure to meet Basel II requirements and Malawi Government, as a sole shareholder in MSB was not prepared to recapitalize the Bank.
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