Bank ABC confirms it’s still in for Blom Bank Egypt
M&A WATCH- Bank ABC is pushing forward with Blom Bank Egypt acquisition talks: The Arab Banking Corporation (Bank ABC) has confirmed it’s still in talks with Lebanon’s Blom Bank to acquire its Egypt branch, but added the standard disclaimer that “there is no certainty that any transaction will be completed,” Bank ABC said in a filing to the Bahraini stock exchange (pdf). The Bahraini bank is expected to complete due diligence on Blom Bank Egypt as early as this week, before making an offer, Masrawy reports, quoting banking sources. The bank reportedly has no qualms about how much it ends up spending as it competes with fellow GCC lender Emirates NBD, which said on Monday that it was still in the running to acquire Blom Bank.
Background: Lebanon’s Blom Bank announced in August it was looking to sell its Egypt unit in response to the economic crisis roiling its home country. The sale will allow the bank to raise its capital by some USD 240 mn to comply with higher capital requirements the Lebanese central bank recently introduced to the banking sector.