Kuwait’s Al Ahli Bank has obtained permission from the Egyptian Financial Supervisory Authority (EFSA) to buy a controlling stake in Piraeus Bank’s Egyptian arm.

Under the deal, the Kuwaiti lender will pay $150m in cash for a 98.5% stake in Piraeus Bank Egypt.

The takeover will allow the Kuwaiti bank to take control of 39 branches, which manages corporate as well as retail clients.

Following the completion of the acquisition, Egypt will become the second foreign market of Al Ahli Bank apart from the UAE, where it operates with two overseas branches in Dubai and Abu-Dhabi.

The deal has already received the regulatory nod from the Egyptian as well as Kuwaiti central banks.