UAE lender First Abu Dhabi Bank pulls bid for Egypt’s EFG-Hermes

First Abu Dhabi Bank withdrew its offer to buy a majority stake in Egypt’s biggest investment bank EFG-Hermes, citing global market volatility amid Russia’s invasion of Ukraine.

FAB had offered to buy a majority stake in EFG-Hermes, valuing the firm at $1.2bn in February. The deal was set to be the biggest acquisition yet in Egypt by the UAE’s largest lender.

Read: First Abu Dhabi Bank makes offer to acquire majority stake in EFG Hermes Holding

“After careful consideration and in the context of ongoing global market uncertainty and volatile macro-economic conditions, First Abu Dhabi Bank has decided to withdraw its non-binding offer,” FAB said in a statement on Thursday.

“Egypt remains a strategically important market for FAB, where the bank will continue to support its customers and employees and continue to invest in the growth of its well-established partnerships and operations.”

FAB shares fell as much as 1.7 per cent in Abu Dhabi on Thursday.