Integration Management (HSBC and Oman International Bank (OIB) Merge) Essay

Integration Management (HSBC and Oman International argot (OIB) Merge) - Essay ExampleUn open to procure more deposits and gain asset make betterment and growth, OIB was ill-equipped to sustain a strong competitory presence domestically and internationally. Synergies of the union include better marketing prowess, how to utilise market research studies to create more customer-centric and pertinent services, streamlining of the banking service model to include more electronic banking elements, and decentralisation of business practices to generate more innovative solutions supported by HSBCs very strong economic portfolio to make changes necessary to adjust to ever-changing market conditions. It is finished the merger that the previous business entity Oman International Bank will be able to effectively compete with domestic financial institutions and prepare the organisation for building a global competitive presence. TABLE OF CONTENTS EXECUTIVE SUMMARY 1.0 Introduction........ ...................................................................................................... 2.0 The rationale for the merger defining the problem............................................... 2.1 Government and institutional problems....................................................... 3.0 Achieving synergies through the merger solutions to the problem....................... 4.0 Conclusion................................................................................................................ ... side of the more obvious strategic intentions of the merger related to improving the financial portfolio of HBSC and OIB, it is judge that this merger will lead to a variety of significant synergies that will make the new entity, HSBC Bank Oman SAOG, more competitive in the Middle East. As a conglomerate whole, HSBC Holdings Plc earned total revenues of 75.6 gazillion USD in 2012, sustaining an asset valuation of 2.69 trillion USD (HSBC 2012), making HSBC the larges t bank in the world in toll of revenues and total liquidity. HSBC is also the sixth largest publicly traded business in the globe as reported by Forbes Magazine in 2012, even larger than Royal Dutch Shell and Berkshire Hathaway (Forbes 2013). HSBC at present owns 51 percent, a majority holding, of OIB (AME Info 2012). Established in 1984, Oman International Bank, a bank maintaining 82 different branches in Oman and four branches in Pakistan and India, maintained total assets of 703.7 million rial (the official currency of Oman) in 2011 (GBCM 2011). Until the merger with HSBC, Oman International Bank (OIB) was 100 percent owned by the Omani government. Unfortunately, OIB was the only bank operational in Oman that experienced a net loss in net income of 9.2 percent whilst other banks in the sector, including Ahli Bank and Bank Sohar experienced net income growth of 28.8 percent and 14.8 percent respectively (GBCM 2011). Because of this inability to improve net income growth, the me rger between OIB and HSBC represented a significant opportunity to improve the banks financial position and liquidity. This merger between HSBC and OIB was only approved in June of 2012, making the merged entity now known as HSBC Bank Oman in the earliest development stages of the alliance. As such, there is limited publish