Bank Audi Egypt ≠ FAB in 2Q2021
First Abu Dhabi Bank is going to have to wait a while longer until it finalizes its acquisition of Bank Audi Egypt: FAB expects to complete its acquisition of Bank Audi Egypt before the end of 2021, FAB Egypt CEO Mohamed Abbas Fayed said, according to Al Mal. The Emirati lender is still waiting for the Egyptian and Emirati central banks to sign off on the transaction, he said, adding that he expects the Central Bank of Egypt to give its approval soon. Unnamed sources told the local press last month that the takeover will be completed this quarter.
Background: FAB had signed the final agreement to acquire 100% of Bank Audi’s Egypt operations in January. The banks didn’t disclose the value of the transaction — which chatter previously suggested is in the neighborhood of USD 700 mn — but it is expected to increase the Emirati lender assets to EGP 120 bn (c. USD 8.1 bn) post-acquisition. Audi’s total assets were valued at EGP 83 bn (USD 5.3 bn) at the end of 3Q2020. Once the transaction closes, FAB’s branch count will more than triple to 70 from its current 17. Bank Audi and Lebanese rival Blom Bank are both exiting Egypt as they go through a tough time in their home market, which has been grappling for months with liquidity issues.