Bahrain-based Arab Banking Corporation (Bank ABC) announced signing an agreement with Lebanon’s Blom Bank on Friday to acquire 99.42 percent of the issued share capital of Blom Bank Egypt.
The acquisition process is subject to a number of conditions and approvals including regulatory approvals in Bahrain, Egypt and Lebanon. It is expected to be completed in Q2 2021.
The proposed cash consideration to be offered by Bank ABC for 100 percent of Blom Bank Egypt under the acquisition is EGP6,700 million ($428 million).
Bank ABC undertakes a significant level of business in Egypt, which is a key strategic market for ABC, having established its presence through the acquisition of Egypt Arab African Bank in 1999.
It currently operates through Bank ABC in Egypt, which is spread across 27 branches in the country.
Blom Bank Egypt will contribute to upscale Bank ABC’s Egyptian footprint, which is fully aligned with Bank ABC’s strategy to be the Middle East and North Africa’s leading international bank.
The acquisition will contribute to repositioning Bank ABC's Egyptian franchise amongst the top 20 banks in Egypt, delivering significantly greater scale and a more efficient platform.
“The acquisition of Blom Bank Egypt is a unique opportunity for Bank ABC to fulfill its longstanding strategic commitment to inorganically expand its core business, giving us a significantly enhanced platform for future growth, in one of the region’s most attractive markets,” said Dr. Khaled Kawan, Group CEO of Bank ABC.
“We have an active relationship with our regulators and will be working to secure their approvals to complete the deal as swiftly as possible.”
“We will then look forward to working with our new Blom Bank Egypt team to merge Bank ABC Egypt and Blom Bank Egypt, thereby creating a new powerhouse in the Egyptian banking sector,” Kawan added.
