BNP Paribas SA (BNPP.PA), France's largest bank, agreed to sell its Egyptian arm to Dubai lender Emirates NBD ENBD.DU for $500 million (307.7 million pounds) as French lenders divest operations in the North African country to shore up their capital bases.
BNP, like other French and European banks, has spent the past year cutting assets and staff to better withstand the euro zone's debt crisis and tougher global Basel III rules on risk-taking.
For ENBD, majority-owned by the government, the deal offers an opportunity to expand its Dubai-centric business, having been hit in recent quarters by its exposure to debt-laden, state-linked entities in Dubai that have been forced to restructure billions of dollars of obligations.
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