The Securities and Exchange Commission of Pakistan (SECP) has blocked the merger of MCB Asset Investment Company with Arif Habib Asset Management, it is reliably learnt. The merger between the two is expected to create the largest asset management house in the country. After according all necessary permission for the merger, the regulator decided to block the merger at the eleventh hour without stating any reasons for doing so.
The SECP move caught the market participants by surprise. The staff of Arif Habib Asset Management and MCB which had been declared surplus were let off and systems of both the companies were fully aligned and expected to go into operation from Tuesday June 28th.
According to informed sources, SECP officials called on Monday June 27 during working hours to postpone the merger by 15 days. The management of the new entity asked for reasons from SECP but was not provided. A fax was sent at 9 pm on Monday June 27 - the day the companies were to be merged. On Tuesday morning, the management received the surprising decision. No specific reason for extending the merger date was specified in the SECP communication.
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