Reuters
DUBAI: Mashreqbank, Dubai s third-largest lender by market value, said on Wednesday it got central bank approval to open branches in Egypt and ruled out bid interest in Alwatany Bank of Egypt. We have approval from the Egyptian and Emirati central banks to open 10 branches in Egypt, Saad Hakim, a spokesman for Mashreqbank, said. The plan is to grow organically in Egypt, he said of the most populous Arab nation. He ruled out interest in Alwatany Bank of Egypt which newspapers have reported is being studied by five Arab and Greek lenders with a view to a takeover. Dubai-based Emirates Today reported on Wednesday that Mashreqbank was interested in taking over Cairo-based Alwatany, citing Tariq Mateen Khan, senior vice president at Mashreqbank. We are not involved in this; we are not interested, Hakim said of the reported bid. Mashreqbank plans to offer corporate, retail and other banking services through its branches to tap a growing economy, Hakim said. Dubai s al-Bayan newspaper reported on Monday that Mashreqbank was one of the lenders to receive Egyptian central bank approval to do due diligence on Alwatany. The other banks were National Bank of Kuwait, National Bank of Greece, Jordan-based Arab Bank and Greece s EFG Eurobank, Bayan reported, citing unidentified banking sources. A spokesman for NBK declined to comment on Tuesday. The bank has said it is interested in making an acquisition in Egypt, and has been in talks with two lenders, including Egyptian Gulf Bank . Greek lender EFG Eurobank is interested in Alwatany, though Greek rival National Bank is not on the shortlist of suitors for the lender, bankers told Reuters in Athens on Tuesday. The press report claiming that National Bank is on a shortlist has no basis, said a senior official at National Bank, Greece s largest lender, who asked not to be identified. Another bank official told Reuters EFG Eurobank was on the shortlist and was interested in Alwatany. There is interest by EFG Eurobank, and they have proceeded with due diligence, the official, who is close to the procedure said on Tuesday. Greek banks have been expanding in the Balkans and are now looking for new ground in the Middle East. A group led by Mashreqbank last year made an unsuccessful bid for Egypt s state-owned Bank of Alexandria. Mashreqbank Chief Executive Abdul Aziz al-Ghurair said in March the lender was considering other targets in Egypt. Shares of Alwatany have soared 40 percent so far this year, according to Reuters data. They were down 2.6 percent at 1017 GMT.
