Bahrain-based Arab Banking Corporation (#Bank ABC) has acquired 99.4% stake in #BLOM Bank Egypt last week for $480 million, after talks of it began in August 2020.
BLOM Bank Egypt is the subsidiary of Lebanon’s BLOM Bank, which was in exclusive talks with Bank ABC last year. BLOM Bank offers a wide range of financial and banking services through 41 branches across Egypt such as Sharm El-Sheikh, Greater Cairo, Damietta, Mansoura, Alexandria, Tanta, Minya, and others.
Talking about the acquisition, Group CEO of Bank ABC, #Khaled Kawan remarked that the deal is a unique opportunity for Bank ABC in fulfilling its commitment to expand its core business inorganically and provides a platform for future growth.
The acquisition deal is subject to approvals from regulatory bodies from Lebanon, Egypt, and Bahrain. The deal contract concerns with customer accounts, along with cash and in-kind assets.
Zulficar & Partners and Freshfields Bruckhaus Deringer were the legal advisors to Bank ABC, while HSBC Bank Middle East served as the sole financial advisor.
In a statement, General Manager and Chairman of BLOM Bank, #Saad Azhari said that the acquisition deal will let the bank align with the latest regulations issued by the Central Bank of Lebanon, which sets out that every Lebanese bank must raise its equity by 20%.