In September, EFG Hermes and the Sovereign Fund of Egypt received approval from the central bank of Egypt to begin due diligence to acquire 76% of the capital of Arab Investment Bank (AIB), a small state-run bank, from National Investment Bank.
EFG Hermes has been looking for an acquisition that would allow it to transform itself from pure play investment banking business into a universal bank – and here was that opportunity.
“It is one of the oldest strategies of EFG to have this universal banking model,” says Mostafa Gad, co-head of investment banking at EFG Hermes. “We thought this is just the right fit to complete the puzzle.”
The deal is the latest evidence of a wave of banking consolidation in the country. A combination of Gulf banks with deep pockets and changes to Egypt’s banking regulations is spurring hopes for a flurry of M&A activity.
“The
