FAB places Bank Audi Egypt acquisition on ice
M&A WATCH- First Bank of Abu Dhabi (FAB) has put on ice its plan to acquire Bank Audi’s Egypt assets due to market conditions, Reuters reports, citing unnamed sources. One source, who said the pact was worth USD 700 mn, told the newswire that it is prioritizing supporting the UAE economy due to the covid-19 pandemic.
We’ll find out more in the coming hours: FAB and Bank Audi will issue a joint statement today or tomorrow confirming the status of negotiations, Masrawy reports, citing sources close to the matter.
Background: FAB said last week that it had completed due diligence on Bank Audi’s Egypt arm and was finalizing its offer. A senior executive said in February that the bank will make a final decision on whether to proceed with the acquisition after completing due diligence. FAB has pursued the acquisition despite the covid-19 outbreak after receiving the greenlight from the Central Bank of Egypt in January.