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Thursday, 7 July 2022

One of the year’s biggest banking takeovers just took place in the Middle East

Kuwaiti bank makes one of the year’s biggest banking acquisitions: Kuwait Finance House is acquiring Bahrain’s Ahli United Bank (AUB) for almost USD 11.6 bn in an agreement announced by the two banks in disclosures (here, pdf) and (here, pdf) yesterday. Kuwait Finance House will offer AUB one share for every 2.695 shares of Ahli United, implying an offer price of USD 1.04 per share — a 13% premium on its share price at Wednesday’s close, according to Bloomberg’s calculations. The acquisition, which has been on the table for years but was pushed to the backburner at the start of the pandemic, ranks among the biggest in the banking sector this year. The combined entity will hold some USD 115 bn in assets, making it one of the Gulf’s largest lenders.

ALSO IN PLANET FINANCE-

  • Another crypto player bites the dust: US crypto lender Voyager has filed for bankruptcy protection, becoming the latest victim to a deepening crypto winter. (Statement)
  • Tyson buys two Tanmiah subsidiaries: US meat producer Tyson Foods will acquire stakes in two of Saudi-based Tanmiah Food subsidiaries for USD 70 mn. (Bourse filing)
  • Microsoft’s Activision takeover under the microscope: The UK’s antitrust regulator has launched an investigation into Microsoft’s planned USD 68.7 bn acquisition of video games publisher Activision. (Statement)

Up

EGX30

8,670

+0.2% (YTD: -27.4%)

None

USD (CBE)

Buy 18.83

Sell 18.91

None

USD at CIB

Buy 18.85

Sell 18.91

None

Interest rates CBE

11.25% deposit

12.25% lending

Up

Tadawul

11,417

+0.6% (YTD: +1.2%)

Down

ADX

9,251

-0.2% (YTD: +9.0%)

Down

DFM

3,062

-1.9% (YTD: -4.2%)

Up

S&P 500

3,845

+0.4% (YTD: -19.3%)

Up

FTSE 100

7,108

+1.2% (YTD: -3.8%)

Up

Euro Stoxx 50

3,422

+1.9% (YTD: -20.4%)

Down

Brent crude

USD 99.90

-2.8%

Down

Natural gas (Nymex)

USD 5.51

-0.2%

Down

Gold

USD 1,736.50

-1.6%

Up

BTC

USD 20,341

+0.1% (YTD: -55.9%)

THE CLOSING BELL-

The EGX30 rose 0.2% at yesterday’s close on turnover of EGP 486.02 mn (41.5% below the 90-day average). Foreign investors were net sellers. The index is down 27.4% YTD.

In the green: GB Auto (+10%), Elsewedy Electric (+6.4%) and EFG Hermes (+4%).

In the red: Cleopatra Hospitals (-4.6%), Housing and Development Bank (-4.5%) and Credit Agricole Egypt (-4.1%).

Asian markets are mostly in the green this morning as investors react to minutes from the Federal Reserve’s June meeting which showed that policymakers are willing to act more decisively to combat inflation. US and European stock futures suggest shares will also see early gains when markets open later today.

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