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PIF said to buy Egypt’s United Bank for $600m

United Bank
Public Investment Fund began talks last year with Egyptian authorities about buying United Bank

Saudi Arabia’s Public Investment Fund (PIF) is in advanced talks to acquire Egypt’s state-owned United Bank, Bloomberg reported, citing informed sources.

The deal may be closed by month-end, they said.

The sovereign wealth fund has nearly completed due diligence on the transaction, with plans to purchase the bank through its Egypt-based investment management firm, Saudi Egyptian Investment Company (SEIC).

The deal is estimated to be around $600 million as Saudi Arabia expands its support and investments in Egypt, the report said.

In August, PIF set up a company to invest in promising Egyptian sectors, extending a policy of pumping money into the Egyptian economy.

The $620 billion sovereign wealth fund said it would target several sectors through SEIC, such as infrastructure, real estate, health care, financial services, food and agriculture, manufacturing and pharmaceuticals.

Saudi Arabia said in June it intended to lead $30 billion worth of investments in Egypt following a visit to Cairo by de facto Saudi ruler and Crown Prince Mohammed bin Salman.