Bahrain’s ABC bank said on Tuesday it was in initial talks to buy Blom Bank’s Egyptian branch, opposing Dubai’s Emirates NBD, which is also a potential bidder. Blom has hired CI Capital to advise on a sale that could be successful at $ 250 million to $ 300 million as the Lebanese lender tries to access its capital, Reuters reported last month, which brought two resources close to the deal. Blom had reached out to potential bidders, adding Dubai’s largest bank Emirates NBD, the resources said. Emirates NBD showed on August 13 that it was interested.
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HSBC is advising ABC Bank on the talks, two sources familiar with the deal told Reuters. HSBC declined to comment. Lebanese banks are keeping an eye on their finances as the country goes through its worst currency crisis since the civil war. Blom’s national rival Bank Audi tried to sell its Egyptian business, but the deal stalled in May after First Abu Dhabi Bank halted talks, generating dubious customers about the COVID-19 pandemic. Array The FAB plans to resume talks to buy Bank Audi’s Egyptian business, Reuters reported this week. ABC Bank in Egypt has a network of 28 branches spread across major cities, in addition to Cairo, Alexandria, Sharm el-Sheikh and other key hubs, according to its website. In the Gulf region, low oil costs and weak economic expansion are pushing banks to merge and primary lenders to pursue acquisition targets outside of the region. Rating agency Moody’s said in July that it expects the Gulf region’s genuine non-oil GDP to contract from 3. 5% to 5% in 2020, which will erode loan applications and banks’ appetite for lending.