Giant UAE-Egypt Deal to Include Stakes in Fertilizer Firms
Giant UAE-Egypt Deal to Include Stakes in Fertilizer Firms
(Bloomberg) -- ADQ, an Abu Dhabi wealth fund, is buying stakes in Egyptian fertilizer and cargo companies as part of a roughly $2 billion investment in the country, according to a person familiar with the deal.
The fund is acquiring Egypt state-held stakes in Abou Kir Fertilizers & Chemical Industries, Misr Fertilizers Production Co. and Alexandria Container & Cargo Handling Co., according to the person, who asked not to be identified as the agreement is confidential.
The UAE has been a key backer of Egyptian President Abdel-Fattah El-Sisi, offering much needed financial support in the form of investments and deposits. The most populous Arab nation is facing soaring commodity prices and a likely fall in tourism from key market Russia as a result of the war in Ukraine.
ADQ wasn’t available to comment, while Alexandria Container & Cargo Handling declined to comment. Officials at Abou Kir and Misr Fertilizers, also known as MOPCO, said any stake sales would be a matter for the existing shareholders.
ADQ is also buying stakes in Fawry for Banking & Payment Technology Services and Commercial International Bank Egypt SAE, the North African nation’s largest listed lender. About half of the value of the deal derives from the sale of an around 18% stake in CIB, people familiar with the agreement said earlier this week.
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