Bahrain’s ABC may sign definitive deal to buy Blom’s Egypt business soon

Bahrain’s Arab Banking Corporation (Bank ABC) are set to sign a definitive purchase agreement soon to buy Blom Bank’s Egyptian subsidiary, a source familiar with the matter told local press on Sunday.

Bank ABC has already completed due diligence on Blom Bank Egypt last month and has submitted its financial offer to acquire the Lebanese bank’s Egypt assets, the source added.

Blom Bank owns 99.42 percent of the issued share capital of Blom Bank Egypt, according to the Lebanese bank’s previous statements.

In September, Bahrain’s ABC revealed that it was in preliminary talks to buy Blom Bank’s Egyptian unit.

Lebanon is currently on the cusp of a financial crisis that has paralysed its banks, dived the local currency, and fuelled poverty and unemployment. In August, the Lebanese central bank urged the banks to increase their capital by 20 percent by the end of February.

Bank ABC currently has a network of 28 branches in Egypt spread across major cities, including Cairo, Alexandria, Sharm El-Sheikh, and other key centres, according to its website.