Saudi Arabia pauses wealth fund plan to acquire Egyptian bank

Saudi Arabia has put on hold a plan by its sovereign wealth fund to acquire Egypt’s United Bank because of a disagreement with the Egyptian authorities over its valuation, two sources familiar with the matter told Reuters.

Saudi Arabia’s Public Investment Fund began talks last year with Egyptian authorities about buying United Bank as part of a broader plan to shore up North Africa’s most populous country which was hit by three currency devaluations over the last year.

The two parties could not come to an agreement over how to value the government-owned lender due to the devaluation of the pound, and both parties are holding their positions, the sources said.

Neither PIF nor Egypt’s central bank immediately responded to a request for comment when contacted by Reuters on Wednesday. — Reuters

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