The National Bank of Egypt received preliminary approval from the Central Bank of the United Arab Emirates to acquire Banque Misr’s branches in the country. The two Egyptian state-owned lenders disclosed the proposed transaction on 22 September. They described it as part of an initial agreement to reorganise their banking presence in the UAE. Completion remains subject to the country’s applicable legal and procedural requirements.
The proposed transfer follows regulatory scrutiny of Banque Misr’s UAE operations after the US Treasury proposed in August to cut them off from the US financial system over alleged Iran-linked transactions. Banque Misr said at the time that it was reviewing the US notice, while the UAE central bank opened an urgent examination of the branches. The UAE and Egyptian central banks subsequently said they were coordinating on the matter. Banque Misr’s UAE branches continued providing banking services while those reviews proceeded.
DEAL RESTRUCTURES TWO STATE BANKS’ UAE PRESENCE
The banks said the planned acquisition forms part of a shared approach to integrating their external presence. Their statement framed the transaction as a response to developments in foreign banking markets and the requirements expected during the next phase. It also said customer services should continue without disruption as the process advances.
The preliminary approval is not equivalent to a completed acquisition. Neither lender disclosed financial terms, a target completion date or the precise assets and liabilities that would transfer. The banks also did not say how staff would be transferred.
COMPLETION DEPENDS ON REGULATORY CONDITIONS
The transaction would consolidate the two lenders’ UAE footprint under National Bank of Egypt if the remaining conditions are satisfied. The proposed US restrictions and the UAE examination provide material regulatory context, although the joint announcement did not cite them as the reason for the proposed deal.
The next milestone is final regulatory clearance and disclosure of definitive transaction terms.