Saudi Sovereign Fund in talks to acquire Egypt's United Bank for $600M
The Saudi Public Investment Fund (PIF) is in advanced talks to acquire The United Bank, which is owned by the Central Bank of Egypt (CBE), in a deal that could be worth around $600 million, according to people familiar with the matter, Bloomberg reported.
The sources said the discussions are private, and that the $620 billion fund will make the acquisition through the Saudi Egyptian Investment Company, which it set up earlier in 2022 to invest in large sectors of the Egyptian economy.
The United Bank was established in 2006 and has 65 branches nationwide and more than 200 ATMs.
The agreement may be completed within December 2022.
Saudi Arabia has pledged $10 billion in investments in Egypt in sectors including health care, education and agriculture. It has already acquired state-owned stakes in four publicly listed companies for $1.3 billion and has deposited $5 billion in the CBE.
Saudi Finance Minister Mohammad Al-Jadaan said that the kingdom has started “investing strongly in Egypt” and will continue “to look at investment opportunities, and this is more important than deposits, as deposits can be withdrawn, but investments remain.