The UAE’s Emirates NBD has begun the due diligence process as part of its acquisition of Egypt’s Banque du Caire, following approval from the Central Bank of Egypt. This deal, which could exceed $1 billion, marks a significant step in the Gulf bank’s expansion plans.
For years, the Egyptian government sought to list Banque du Caire on the Egyptian stock exchange. However, despite the bank’s shares being publicly traded since 2017, the initial public offering (IPO) did not materialize. Now, the government is fast-tracking the sale, with expectations that the deal will be completed within the next six weeks, according to sources familiar with the matter.
The Egyptian government is aiming to sell Banque du Caire for more than $1 billion, though the final value will be determined once the due diligence process is concluded. Another source indicated that a Kuwaiti institution had expressed interest in acquiring the bank, but priority has been given to Emirates NBD to proceed with the deal.
In parallel, Banque du Caire is addressing issues surrounding its assets in the Sinai Peninsula, exploring options to either sell them to local investors or transfer ownership to another state-owned bank. This is in compliance with Egyptian laws that prohibit foreign ownership of assets in the region.
As of the end of September, Banque du Caire reported a deposit portfolio exceeding 347 billion Egyptian pounds, while loans and customer facilities stood at approximately 187.4 billion pounds.
