Dubai’s Emirates NBD is reportedly in talks with the management team of Lebanon’s Blom Bank to buy its business in Egypt.

Emirates NBD anticipates Blom Bank Egypt’s value to be around $413-444m, Arab News reported.

This value represents nearly 1.5 times the total ownership rights in the bank.

The deal’s success is subject to the receipt of necessary approvals from the Central Bank of Egypt (CBE).

CBE already approved the request to begin the due diligence process, the report added.

Moreover, Blom Bank Egypt employees submitted a request to preserve their rights after the sale process is completed.

Earlier, CBE governor Tarek Amer said that the “Central Bank is fully committed to the rights of merged banks employees, including employees of the Lebanese Blom Bank in Egypt, and that the matter is the original responsibility of the Central Bank.”

The deal is expected to be completed within weeks, the Arab News report added.

Blom Bank Egypt, which started operating in 2005, has 41 branches in the country with EGP2bn ($127.2m) in paid-up capital.

Blom Bank needs to raise nearly $240m to comply with the capital requirements of the Lebanese government.

As a result, Blom Bank considered selling its Egyptian business for up to $300m back in August this year.

The latest talks come after Bahrain’s Bank ABC began preliminary talks to acquire Blom Bank Egypt in September.

Currently, Bank ABC is conducting due diligence on the deal, which is expected to end this month.

Recent deals in the Gulf region

In September, Bank Leumi signed memorandums of understanding (MoUs) with First Abu Dhabi Bank (FAB) and Emirates NBD.

Emirates NDB inked an MoU with Israel’s Bank Hapoalim.

Jordan-based Capital Bank commenced due diligence to buy Lebanon-based Bank Audi’s businesses in Jordan and Iraq.