Top News



banking

Vibrant private sector crucial for boost...
May 17, 2022
NBF records 44% higher unaudited profits...
April 27, 2022
Cash is no longer king: 69% of Middle Ea...
April 21, 2022

UAE's Mashreqbank says payments business not offered for sale

March 3, 2022
banking

Dubai-based bank also says it has not received any offers from buyers

UAE lender Mashreqbank has dismissed reports that it is considering a sale of its payments business.

In a statement to the Dubai Financial Market (DFM) on Wednesday, the Dubai-based bank clarified that it has not made any offer to sell the company nor received any proposals from potential buyers.

“We confirm that as of date, we haven’t offered the company for [sale], we haven’t received any offers and we are not currently in negotiation with any potential buyer nor engaged in any transactions to sell [the payments business] that would warrant market disclosure,” Mashreqbank said.

Bloomberg reported last week that the lender is looking to sell its payments division, which deals with credit and debit card transactions, in a deal that could value the unit at approximately $500 million. The company is reportedly working with Goldman Sachs “to sound out potential buyers.”

Banking mergers and acquisitions (M&As) have recently increased as financial institutions divest assets that are not considered a core part of their business. In 2021, deals among fintechs and between banks and fintechs trended upward, with the deal value for US-based firms alone rising by 12 percent year over year to $1.16 billion, according to Deloitte.

“2021 was a banner year for megadeals as banks sought scale, capabilities, business lines, and markets compete against larger rivals,” Deloitte said.

Last Monday, First Abu Dhabi Bank (FAB) announced the sale of a 60 percent stake in its payments unit, Magnati, to US-listed Brookfield Business Partners.

zawya