First Abu Dhabi Bank suspends talks to acquire Bank Audi’s Egyptian business amid coronavirus crisis

Given the exceptional circumstances caused by the coronavirus crisis, First Abu Dhabi Bank (FAB) has suspended all talks to buy the Egyptian assets of Lebanon’s Bank Audi, the two lenders said in a joint statement Monday.

“Despite the incompletion of the sale deal due to the exceptional circumstances caused by the coronavirus crisis which has led to the suspension of all talks, we would like to thank First Abu Dhabi Bank for its efforts and creative discussions.” said Bank Audi’s chief financial officer Tamer Ghazaleh.

Mohamed Bedir, the CEO of Bank Audi Egypt, said in a media statement” Bank Audi Egypt is proud to take the lead in the Bank Audi Group in terms of its exceptional profitability and growth rates since its inception besides its position among private banks in Egypt and being in a country that enjoys a political and economic stability …”

The deal by FAB, the UAE’s biggest lender, to buy Bank Audi Egypt for was worth $700 million but the timing was now not right due to the need to support the UAE economy in light of the pandemic, an informed source told Reuters earlier the day.

Lebanese banks are trying to boost their finances as the country endures its worst financial crisis since the civil war.

Bank Audi Egypt has grown from a three-branch operation acquired by Bank Audi in 2005 to 50 branches with total assets of $4.4 billion as of the end of September 2019.