DUBAI, Aug 11 (Reuters) - Bahrain's Arab Banking Corp (ABCB.BH) has completed the acquisition of a 99.5% stake in the Egyptian unit of Lebanon's BLOM Bank (BLOM.BY), which will allow ABC to triple its market share and balance sheet in Egypt.
The announcement followed the successful completion of ABC's mandatory tender offer for BlOM's Egyptian unit for $425 million, commanding a 1.37 times book value at the end of the first quarter, it said in a statement on Wednesday.
"Egypt is a burgeoning market in the Middle East with huge future potential," ABC's Group Chief Executive Khaled Kawan said in a statement.
He said the bank planned to introduce digital and mobile banking services that it has introduced in its other markets.
Both banks will operate as separate entities until the legal merger is completed after regulatory approval. The deal is expected to conclude in the first quarter of 2022.
Lebanese banks have sold assets abroad to raise capital as the country's financial crisis has paralysed its banks, sunk the currency and fuelled poverty and unemployment.
First Abu Dhabi Bank (FAB.AD) in January agreed to buy the Egyptian business of Lebanon's Bank Audi (AUDI.BY) in a deal which will make the largest lender in the UAE also one of the biggest foreign banks in Egypt.
Reporting by Saeed Azhar; editing by David Evans
Our Standards: The Thomson Reuters Trust Principles.
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August 11, 2021 at 06:22PM
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Bahrain's ABC triples Egypt market share with BLOM unit takeover - Reuters
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