Emirates NBD, part of the renowned Emirates NBD Group, has completed the acquisition of BNP Paribas S.A.E shares in a US$500 million deal after fulfilling the required approvals from the Central Bank of Egypt (CBE) and the General Authority for Investment (GAFI) on the majority of shares representing 95.2%, while necessary approvals are currently in process for the minorities shares owned by Bank Misr and Banque du Caire Employee Insurance Fund and representing 4.8% from the total shares.
Rick Pudner, Group CEO of Emirates NBD, stated, “Egypt is a key market in the Middle East and we are totally committed to serve the Egyptian economy and community. This acquisition represents a milestone opportunity for us to realize our strategic goal to be globally recognized as the most valued financial services provider based in the Middle East. We are confident that this acquisition will also underpin the potential opportunities that the Egyptian market offers.”
By this acquisition, Emirates NBD will take over BNP Paribas’ Egypt operation and will serve a client base of over 200,000 customers, 3,000 corporate and 700 financial institutions through a network of 68 branches. It is worth noting that despite the challenges facing the Egyptian market and economy, BNP Paribas Egypt succeeded in achieving a net consolidated profit of EGP 266.5 million in 2012, an increase of 20% compared to 2011, and a consolidated net interest income of EGP 551 million during 2012, with an increase of 23% compared to 2011.
Following completion of the transaction, Emirates NBD and BNP Paribas plan to co-operate in a number of business areas such as trade finance, cash management and corporate and investment banking. BNP Paribas will continue to service its clients in Egypt through this preferred partnership.
Pudner added “Emirates NBD has an ambitious future plan for Egypt that will enable the introduction of unprecedented and unique products and services that will add great value to the Egyptian customers. Our plan is to expand our brand territory and to maximize its value domestically and regionally”.
Emirates NBD is the largest bank in the United Arab Emirates by deposits, equity, profits and branch network, and one of the top 5 banks by assets in the MENA region reaching over $83.0 billion as at 31st December 2012.
With international presence in the Kingdom of Saudi Arabia, Qatar, United Kingdom, Singapore and Jersey (Channel Islands), and representative offices in India and China, the bank is a leading provider of full-fledged financial services, delivering enhanced value in the areas of corporate banking, retail banking and wealth management in addition to Islamic and investment banking and is well positioned to grow and deliver outstanding value to its shareholders, customers, and employees.