Emirates NBD has received approval to conduct due diligence for acquiring a stake in Banque du Caire, a deal exceeding USD 1 billion. The Egyptian government is prioritizing the swift completion of this transaction as part of broader privatization efforts aligned with IMF economic reforms. Banque Misr aims to sell a 45% stake, prompting public discussion and scrutiny regarding the sale.
Emirates National Bank of Dubai (NBD) has received approval from the Central Bank of Egypt to conduct due diligence for the acquisition of a stake in Banque du Caire, a deal that could surpass USD 1 billion (EGP 50 billion). Sources have informed Asharq Business that the Egyptian government is actively working to expedite this transaction, aiming for completion within six weeks.
This acquisition aligns with Egypt’s broader economic reforms under the International Monetary Fund (IMF) program, which includes the privatization of state-owned assets. The IMF has recently urged Egypt to implement a new economic model that reduces the government’s involvement in the economy, indicating a shift towards privatization strategies.
There has not yet been an official announcement regarding this acquisition, which has generated significant discussions. TV host Amr Adib commented on the situation via X, suggesting that “Selling the bank in secret is nearly impossible” and emphasized that the public will soon learn about the buyer and their offer. He further added, “We’ve been trying to sell it since the ‘90s.”
As of September, Banque du Caire, a subsidiary of the state-owned Banque Misr, held assets worth USD 9.4 billion (EGP 478 billion). Reports indicate that Banque Misr seeks to divest a 45 percent stake in Banque du Caire for approximately USD 1.2 billion (EGP 60 billion), with intentions to list additional shares on the Egyptian stock exchange.
Egypt is intensifying its efforts to privatize state-owned enterprises to enhance economic productivity, attract foreign investment, and alleviate the financial burden on its public budget. During a televised press conference in December, Prime Minister Mostafa Madbouly announced plans to sell shares in at least ten government-held companies by the end of 2025, including four affiliated with the military.
These companies, such as military-run fuel chains Watanya and Chillout, will be sold to strategic investors or made available for public trading on the Egyptian stock exchange, marking a significant step toward Egypt’s economic reform agenda.
In conclusion, Emirates NBD’s potential acquisition of a stake in Banque du Caire represents a critical component of Egypt’s privatization efforts. With significant backing from the government and alignment with IMF recommendations for economic reform, this deal could facilitate foreign investment and enhance economic productivity. The ongoing debate surrounding the transaction underscores the complexity of privatizing state-owned assets in Egypt. The broader plan by the Egyptian government to sell shares in multiple entities by 2025 further reflects its commitment to restructuring the economy and attracting private capital.
Original Source: egyptianstreets.com
