Bahrain's Bank ABC announces it completes acquisition of Blom Bank Egypt

Bahrain’s Bank ABC has completed the legal merger of Bank ABC Egypt and Blom Bank Egypt, following its acquisition of 99.5% of Blom Bank Egypt, Bank  ABC said in a statement yesterday.

The two sides reached an initial agreement on the acquisition in January 2021 before finalizing the deal in August in a USD 424 mn transaction, valuing Blom Bank’s Egyptian arm at USD 427 mn (EGP 6.7 bn at the time.)

The two banks have now become a single legal entity after receiving final regulatory approvals, including those of the Central Bank of Egypt and the General Authority for Investment and Free Zones.

The two banks will continue to operate a normal service while work continues to fully integrate their products and services. 

The legal merger triples Bank ABC Egypt’s market share and takes its total assets to EGP 67bn:

The merger will expand Bank ABC’s local network to 68 branches throughout the country, adding Blom’s 41 locations to its existing 27-branch network. The purchase includes Blom Bank Egypt’s physical and non-physical assets and customer accounts. The acquisition triples Bank ABC’s market share, takes its total assets to EGP 67 bn, and will help it expand its service offerings.

Advisors: HSBC Bank Middle East was the financial advisor for Bank ABC. Zulficar & Partners was the legal advisor to the buyer, while Commercial International Brokerage Company (CIBC) was the broker.