Back to the complete issue
Tuesday, 4 May 2021

Blom Bank is one step closer to leaving Egypt

The acquisition of Blom Bank Egypt by Bahrain’s Bank ABC will get approval from the Central Bank of Egypt (CBE) in the coming weeks, Al Mal reports, citing an unnamed source with direct knowledge of the transaction. The two banks are expected to finalize the sale in 2Q2021, after Bahrain and Lebanon’s central banks gave the green light to the transaction in March, the source said. The sale includes Blom’s physical and non-physical assets and customer accounts, marking the first of two anticipated exits by Lebanese banks, with Bank Audi due to finish transferring its Egypt assets to First Abu Dhabi Bank next year.

Background: Bank ABC reached an agreement to purchase the 99.42% stake in Blom Egypt in January this year following several months of speculation about whether fellow GCC lender Emirates NBD would compete for the acquisition. ABC already has a presence in Egypt with Bank ABC Egypt, in which it owns a 93% stake. Blom and Bank Audi are both leaving Egypt as they cope with fallout from a severe financial crisis in their home market of Lebanon. Meanwhile, the National Bank of Greece (NBG) is set to terminate its activities in Egyptian market after years of unsuccessful attempts to divest its portfolio here.

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 HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; 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; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.