UAE’s First Abu Dhabi Bank withdraws acquisition offer for Egypt’s EFG Hermes

First Abu Dhabi Bank (FAB), the UAE’s biggest lender by assets, withdrew its offer to acquire a majority stake in Egypt’s biggest investment bank EFG Hermes, citing global market volatility in the wake of Russia’s war in Ukraine.

Earlier in February, FAB made an offer to buy a controlling stake in EFG Hermes, valuing the firm at 18.5 billion Egyptian pounds ($1.18 billion). Th deal was set to be the biggest acquisition yet in Egypt by the UAE’s top lender.

“After careful consideration and in the context of ongoing global market uncertainty and volatile macro-economic conditions, First Abu Dhabi Bank (FAB) has decided to withdraw its non-binding offer submitted on 9 February 2022,” FAB statement read on Thursday.

“Egypt remains a strategically important market for FAB, where the bank will continue to support its customers and employees and continue to invest in the growth of its well-established partnerships and operations in Egypt.” FAB added.

FAB shares drop as much as 1.7 percent in Abu Dhabi after the news on Thursday.

The success of the EFG Hermes deal would have been FAB’s second acquisition in Egypt. FAB had signed a definitive agreement for the acquisition of 100 percent share in Bank Audi Egypt in January 2021 and received regulatory approval in April for the deal.