Saudi Arabia’s Public Investment Fund (PIF) is reportedly in advanced talks to acquire Egypt’s United Bank in a deal that could value the state-owned bank at around $600 million (EGP 14.8 billion) as the Gulf state seeks to shore up the North African country’s economy which is reeling from the Ukraine war.
Sources told Bloomberg that an agreement may be finalised as soon as this month although final terms are still being agreed upon. The acquisition, which is part of Saudi Arabia’s $10 billion commitment, will be carried out through the Saudi Egyptian Investment Company (SEIC).
PIF launched SEIC in August to invest in promising sectors throughout Egypt including financial services, infrastructure as well as real estate and pharmaceuticals. The investment firm scooped up state-owned stakes in four Egyptian publicly-listed companies for $1.3 billion and deposited $5 billion in the Central Bank of Egypt.
Founded in 2006, United Bank has 65 branches nationwide and more than 200 ATMs, according to information on its website. Saudi Arabia plans to invest $24 billion in countries across the MENA region as the Gulf state seeks to bolster regional economies.
