Skip to content Skip to Search
Skip navigation

Egyptian banks complete merger but M&A activity falls

Bank ABC Egypt's merger with Blom will double its number of branches and ATMs in the country Pexels/Andrea Piacquadio
Bank ABC Egypt's merger with Blom will double its number of ATMs and branches in the country
  • Bank ABC Egypt merges with Blom
  • M&A activity down 53% in 2023
  • Mena deals increase by 4%

Bank ABC Egypt has announced the completion of its merger with Blom Bank Egypt, which aims to treble its market share in the North African country.

The integration has doubled the size of the Egyptian network of branches and ATMs of Bahrain-based Bank ABC.

It follows Bank ABC’s acquisition of a 99.5 percent stake in Blom Bank Egypt in August 2021.

Bank ABC’s latest financial results showed a 53 percent surge in net profit to $235 million last year. Its asset base reached $44 billion, a rise of 20 percent year on year.

Following the merger, a new mobile app for retail customers will be launched, alongside online trade and cash management tools for businesses. 

Merger and acquisition activity in Egypt fell sharply in 2023, according to law firm Baker McKenzie.

It said in a research paper that total M&A volume declined by 53 percent to 139 deals, while value fell by 62 percent to nearly $3.5 billion.

Although deal activity in Egypt remained subdued for most of the year, December emerged as the strongest month, with 20 deals. Value-wise, it outperformed all other months, reaching $1.6 billion.

“While the M&A landscape in Egypt faced notable challenges throughout 2023, the surge in total value in the second half of the year signals resilience and opportunities within the market,” said Hani Nassef, M&A partner at Helmy, Hamza & Partners, Baker McKenzie Cairo.

The majority of cross-border deals in 2023 were inbound, comprising 69 deals valued at $1.4 billion, compared with 18 outbound deals worth $112 million.

Within the inbound investments, the financial industry emerged as the top target sector, securing 18 deals.

In the wider Middle East and North Africa, a separate report by EY said that dealmaking during 2023 reached $86 billion, up 4 percent on the previous year. 

The GCC region accounted for the majority of deals at 565, valued at $83.2 billion.

Earlier this month, Moody’s Ratings affirmed the long-term bank deposit ratings of five Egyptian banks, while it revised their outlook from negative to positive.

The decision came days after the agency raised Egypt’s credit outlook from negative to positive following the expanded $8 billion funding from the International Monetary Fund.

Latest articles

Flooding in Dubai affected many people's homes. Emaar has promised .free repairs for its residents, and an upgraded sewerage system is planned

Emaar promises free repairs as Dubai launches sewerage system

Emaar Properties is offering free repairs to residents whose homes were damaged during this week’s extreme flooding, as Dubai also announced an AED80 billion ($22 billion) sewerage system. The developer announced on Friday that it would repair all homes in its communities affected by the historic levels of rain, “at no cost to residents”. Emaar’s […]

A customer paying with a credit card inside the Black Friday Market in Beirut. Lebanon wants more people to move away from cash

Lebanon launches plan to promote use of bank cards

Lebanese central bank Banque du Liban announced a new agreement on Thursday that it hopes will result in a rebound in the use of bank cards. As part of the agreement, Mastercard and Visa will lower card fees on transactions, particularly for people with bank accounts based outside Lebanon. In a press release, the bank […]

Construction work in Kuwait. Nurseries, schools and shops are being built for the new residential district of Al Metlaa

Kuwait signs $140m contracts for Al Metlaa development

Kuwait’s Public Authority for Housing Welfare (PAHW) has signed two contracts worth KD42 million ($140 million) to construct public buildings in Al Metlaa, a new residential district north of Kuwait City. Nurseries, stores, schools and shops will be included, state news agency Kuna reported. Electricity connections have been provided for 109 buildings in the district, […]

Iraq gas oil

Iraq to auction 30 oil and gas projects this month

Iraq will auction 30 new oil and gas projects in two licensing rounds before the end of April. The bidding round will be held on April 27, Reuters reported, citing an oil ministry statement. Last October Iraq passed a long-awaited oil and gas law, which will help the country attract more international investments into the hydrocarbon industry and boost government revenues.  Ali Metwally, an […]