Back to the complete issue
Sunday, 1 November 2020

First Abu Dhabi Bank resumes talks to acquire Bank Audi Egypt

M&A WATCH- First Abu Dhabi Bank (FAB) has resumed talks with Bank Audi to acquire the Lebanese lender’s Egypt unit, according to a bank disclosure (pdf) to the Abu Dhabi stock exchange. The potential acquisition, which could be worth c.USD 700 mn, “is in line with FAB’s long-term growth strategy and expansion plans in targeted markets,” the statement said, stressing that any transaction would follow due diligence, the signing of an agreement, and regulatory approvals.

Background: We had heard whispers of FAB resuming negotiations in September after they were put on hold in May due to covid-19. The potential sale comes as Gulf banks look to acquire the Egypt units of Lebanese banks facing tough times due to the financial crisis in their home country. Acquisitions are currently the only way into Egypt’s banking sector as the CBE has not granted new licenses for years.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.