Bahrain's second-biggest lender Arab Banking Corporation, or Bank ABC, is buying the Egyptian assets of Lebanon’s Blom Bank for 6.7 billion Egyptian pounds ($428.3 million). The deal is subject to the approval of Bahraini, Egyptian and Lebanese banking regulators, Bank ABC said on Sunday. “The acquisition of Blom Bank Egypt is a unique opportunity for Bank ABC to fulfil its long-standing strategic commitment to inorganically expand its core business, giving us a significantly enhanced platform for future growth in one of the most attractive markets in the region,” said chief executive Khaled Kawan. Blom Bank entered exclusive talks with Bank ABC last month after discussions with Dubai's biggest bank Emirates NBD ended. Blom Blank is under pressure to comply with a central bank <a href="https://www.thenationalnews.com/business/banking/lebanon-s-central-bank-commands-lenders-halt-dividends-and-hike-capital-by-20-1.933533">requirement</a> that lenders raise their capital by 20 per cent by the end of February or risk being shut out of the market. “This transaction demonstrates our continuous commitment to our stakeholders and dedication to our strategy," said Saad Azhari, chairman and general manager of Blom Bank Lebanon. "It will allow Blom Bank Lebanon to comply with the latest regulations issued by the central bank of Lebanon.” Lebanon faces its worst political and economic crisis in three decades, made worse by the rapid spread of Covid-19 in the country. Its currency, the Lebanese pound, has lost more than 80 per cent of its value against the US dollar. Another lender, Bank Audi, agreed to sell its assets in Jordan and Iraq last month to Jordan’s Capital Bank. It also resumed talks <a href="https://enterprise.press/wp-content/uploads/2020/10/FAB-negotiationa-Bank-Audi-disclosure.pdf">in October</a> with First Abu Dhabi Bank about the potential sale of its assets in Egypt. Bank Audi's Egyptian subsidiary had 50 branches with assets worth about $4.4bn at the end of September 2020. Bank ABC already has a presence in Egypt through Bank ABC Egypt, a subsidiary in which it owns a stake of more than 90 per cent. The acquisition of Blom Bank’s assets will consolidate its position, provide a “highly profitable franchise with significant future growth potential in one of the most fundamentally attractive markets” in the Mena region, the Bahraini lender said. The deal will add 41 new branches to Bank ABC's network and boost is small and medium enterprise, retail and corporate lending businesses. The deal is expected to be completed in the second quarter of this year. Until then, the lenders will operate independently in Egypt, North Africa’s largest economy. The banks will work together to secure regulatory approval and “complete the deal as swiftly as possible”, the Bahraini lender said. “We ... look forward to working with our new Blom Bank Egypt team to combine Bank ABC Egypt and Blom Bank Egypt, thereby creating a new powerhouse in the Egyptian banking sector,” said Mr Kawan. HSBC Bank Middle East is the financial adviser to Bank ABC, with Freshfields Bruckhaus Deringer and Zulficar & Partners acting as legal advisers. Blom Bank Lebanon was advised by CI Capital while Baker McKenzie acted as legal counsel on the deal.