Emirates NBD has received approval to conduct due diligence for acquiring a stake in Banque du Caire, potentially valued at over USD 1 billion. This acquisition aligns with Egypt’s privatization efforts under the IMF’s economic reform program. Prime Minister Mostafa Madbouly noted plans to offload shares in ten governmental companies by 2025, pursuing foreign investments to improve economic activity.
Emirates National Bank of Dubai (NBD) has received approval from the Central Bank of Egypt to proceed with due diligence concerning the acquisition of Banque du Caire. This transaction could potentially exceed USD 1 billion (EGP 50 billion), according to sources who spoke with Asharq Business.
One anonymous source stated that “the government is pushing diligently to finalize this deal swiftly, with an expected completion within six weeks.” This acquisition aligns with Egypt’s efforts to privatize state-owned enterprises, which is a part of broader economic reforms supported by the International Monetary Fund (IMF).
The IMF recently encouraged Egypt to adopt a new economic model characterized by a reduced role of the state in the economy. Although there has been no official announcement regarding this acquisition, discussions have created a stir among the public. TV host Amr Adib commented on social media, “Selling the bank in secret is nearly impossible. We’ll soon find out who’s trying to buy it and what their offer is.”
As of September, Banque du Caire, a subsidiary of the state-run Banque Misr, possessed assets worth USD 9.4 billion (EGP 478 billion). Reports indicate that Banque Misr plans to sell a 45% stake in Banque du Caire for approximately USD 1.2 billion (EGP 60 billion), with intentions to further list shares on the Egyptian stock exchange.
Egypt’s initiative to privatize state-owned entities aims to enhance economic productivity, attract foreign investments, and alleviate pressure on the national budget. In a recent press conference, Prime Minister Mostafa Madbouly announced plans to divest shares in at least ten government-held companies by the end of 2025, including those controlled by the military. These firms, such as the military-operated fuel chains Watanya and Chillout, are slated for transfer to strategic investors or for public trading on the Egyptian stock exchange.
Emirates NBD’s potential acquisition of Banque du Caire signifies a significant move towards the privatization of state-owned assets in Egypt. With government support and an emphasis on reform, this deal is reflective of a broader strategy to revitalize the economy and engage foreign capital. The ongoing announcements and implications of this transaction illustrate a critical shift in Egypt’s economic landscape, underpinned by the IMF’s guidelines and strategic government initiatives.
Original Source: egyptianstreets.com
