Thursday, 26 November 2020

#Saudi, #AbuDhabi Wealth Funds Team Up on Egyptian Drugmaker Deal - Bloomberg

Saudi, Abu Dhabi Wealth Funds Team Up on Egyptian Drugmaker Deal - Bloomberg

Two of the biggest sovereign wealth funds in the Middle East are exploring a joint bid for an Egyptian pharmaceutical company, a deal that could mark the beginning of wider co-investment plans between the two state-controlled firms, people familiar with the matter said.

Saudi Arabia’s Public Investment Fund and ADQ, formerly known as Abu Dhabi Development Holding Co., are weighing the purchase of Bausch Health Cos.’s Cairo-based drug unit, the people said, asking not to be identified because negotiations are private. In addition, the two funds have held talks to work closely on other transactions in areas such as food security, health care and industrials, the people said.

A representative for ADQ wasn’t available to comment. The PIF and Bausch declined to comment. A spokesperson for Amoun didn’t answer two calls, or respond to a text message seeking comment.

Fearing global supply disruptions, Gulf states have been buying overseas farmlands and investing in agricultural technology. Abu Dhabi, mostly through ADQ, intensified efforts during the coronavirus pandemic by acquiring a stake in agricultural trader Louis Dreyfus Co. and investing in Lulu Hypermarket Group’s expansion into Egypt. The PIF is said to be weighing an investment into the same supermarket chain operator.

ADQ has been holding talks to acquire Bausch’s Egyptian business, known as Amoun Pharmaceutical Co., which could be valued at around $700 million, Bloomberg reported last month. Talks are ongoing and there’s no certainty the deliberations will lead to a transaction involving one or both of the funds, the people said.

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