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.