Emirates NBD is considering purchasing Bank Audi’s Egypt assets, alongside its plans to acquire BLOM Bank’s Egypt assets, according to sources familiar with the matter.
Sources have told Daily News Egypt that Emirates NBD aims to boost its presence in the Egyptian market by purchasing Bank Audi Egypt assets.
“The increased presence will occur after they complete their acquisition of BLOM Bank Egypt, which is expected to be finalised in October,” the sources explained.
Daily News Egypt reached out to Bank Audi Egypt CEO and Managing Director Mohamed Bedeir, who denied the talks, saying that “there are no current negotiations with any party.”
Another source revealed that BLOM Bank Egypt also received a competing takeover offer from First Abu Dhabi Bank (FAB), although “BLOM Bank will probably go with the NBD offer, which is already in its advanced stages.”
Notably, FAB has recently put on hold discussions to acquire the assets of Bank Audi’s Egyptian unit, citing difficult market conditions due to the novel coronavirus (COVID-19) pandemic.
The sources added that after the BLOM Bank acquisition, NBD will increase its network to 110 branches, adding to the 40 already existing ones.
“If all goes well, the bank plans to implement a restructuring plan, to handle the expansion, and capture a large market share in the Egyptian banking market, as well as expanding in non-banking financial services,” the sources revealed.
BLOM Bank Egypt is one of the largest units of Lebanon’s BLOM Bank group outside Lebanon.
In April, Daily News Egypt reported that banks were approaching BLOM Bank Egypt with acquisition offers.
Both Emirates NBD and BLOM Bank rely on institutional deposits, which account for 60% of NBD deposits, and 75% of the Lebanese bank’s deposits.
If the deal succeeds, 67% of NBD’s deposits will come from companies, accounting for a total of EGP 56bn in institutional deposits out of a total deposit portfolio of more than EGP 83.3bn by the end of last year.