Emirates NBD may acquire Banque du Caire for over $1 billion, pending due diligence approval from Egypt’s Central Bank. This aligns with Egypt’s privatization initiatives and IMF economic reforms. Public discussions about the sale have emerged, highlighting skepticism regarding transparency. Plans to offload shares from other state-run enterprises are also underway, suggesting significant economic changes.
Emirates NBD has received approval from the Central Bank of Egypt to conduct due diligence for acquiring Banque du Caire, with the transaction potentially valued over $1 billion (EGP 50 billion). Reports suggest that officials are working to finalize the deal quickly, with expected completion within six weeks, according to sources close to the matter.
This acquisition aligns with Egypt’s efforts to privatize state-owned assets as part of broader economic reforms promoted by the International Monetary Fund (IMF). The IMF has advised Egypt to shift towards a new economic model that reduces state involvement in economic matters, reinforcing the urgency of this potential deal.
While an official confirmation is pending, the news has generated significant discussion. TV host Amr Adib expressed skepticism over the confidentiality surrounding the sale, remarking, “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 state-owned Banque Misr, has assets amounting to $9.4 billion (EGP 478 billion). Banque Misr plans to sell a 45% stake in Banque du Caire for up to $1.2 billion (EGP 60 billion), with future share listings anticipated on the Egyptian stock exchange.
Egypt is actively pursuing the privatization of state enterprises to enhance economic productivity and attract foreign investment. Prime Minister Mostafa Madbouly previously announced plans to divest shares in at least ten government-backed firms by the end of 2025, which includes military-owned companies.
Entities such as the military-operated fuel chains, Watanya and Chillout, may be sold to strategic investors or publicly listed on the Egyptian stock exchange, marking a significant shift in the government’s approach to managing state resources.
Emirates NBD’s planned acquisition of Banque du Caire signals a critical step in Egypt’s ongoing privatization efforts. With support from the government and guidance from the IMF, this deal is positioned to enhance economic efficiency while reducing state control. Following the expected transaction, potential further listings on the Egyptian stock exchange could reshape the landscape of state-run enterprises.
Original Source: egyptianstreets.com
