Bahrain’s Bank ABC says Egypt market share tripled with Blom unit takeover

Bahrain’s Arab Banking Corporation (Bank ABC) said on Wednesday its market share and balance sheet in Egypt are tripled as it completed the acquisition of a 99.5 percent stake in Blom Bank Egypt.

The announcement came after the successful completion of ABC’s mandatory tender offer for BlOM’s Egyptian unit for $425 million, commanding a 1.37 times book value at the end of the first quarter, the Bahraini lender said in a statement on Wednesday.

“Egypt is a burgeoning market in the Middle East with huge future potential,” ABC’s group chief executive Khaled Kawan said in the statement.

Kawan said the bank is planning to introduce digital and mobile banking services that it has introduced in its other markets.

Both banks will operate as separate entities until the legal merger is completed after regulatory approval, ABC statement read.

ABC Bank said it expects the deal to conclude in the first quarter of 2022.