UK bank plans sale of $500m regional unit

08 March 2016

It was reported that Barclays Africa Group was initially in talks to buy both Egyptian and Zimbabwean operations

UK-based bank Barclays is mulling plans to sell off its Egyptian unit after it failed to fold it into its Africa business.

A local banking source told MEED that Barclays’ Egyptian unit is valued at approximately $500m. US news agency Bloomberg also quoted a source with the same valuation figure.

It was reported that Barclays Africa Group was initially in talks to buy both the Egyptian and Zimbabwean operations, but the deal broke down as it failed to agree on a price with its parent company. Barclays owns 62 per cent of the South Africa-listed Barclays Africa, according to Bloomberg.

Several regional banks are reported to be interested in the purchase of the Egyptian unit.

Barclays, which has been operating in Egypt since 1864, employs 1,500 people and has 56 branches across the country with a focus on retail banking.

Barclays sold its retail banking business in the UAE to the local Abu Dhabi Islamic Bank in 2014 for approximately $177m.

 

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