We have two pieces of M&A news for you folks this morning. One story closes the loop on a much-discussed transaction, the other could set up a new one:

#1- NPH now owns 100% of Pachin: Dubai-based National Paints Holding (NPH) acquired the 20% of EGX-listed Paint and Chemical Industries (Pachin) that it didn’t already own for EGP 9.21 mn on Monday, according to an EGX bulletin picked up by Zawya. The company purchased 231.6k shares for EGP 39.80 apiece, giving it 100% ownership of the company.

Remember: NPH acquired over 80% of the state-owned company for around EGP 770.5 mn in May. This was the first state asset to be sold under the government’s renewed privatization drive.

A REAL ESTATE MERGER?

Two state-owned real estate developers could be merged: The government is considering merging Maadi Development and Construction and El Nasr Housing and Development ahead of selling shares to a strategic investor, Asharq Business reported yesterday, citing two sources with knowledge of the matter. The people told the news outlet that the Sovereign Fund of Egypt proposed the merger to the government, which is reportedly waiting for both companies to issue their financial statements for 2022-2023 before determining their valuations ahead of a potential merger.

Remember: The companies, both subsidiaries of the Holding Company for Construction and Development, are both on the list of 32 state-owned companies in which the Madbouly government plans to sell stakes over the next year. We heard in March that the companies are planning to bring on outside investors via capital increases, rather than by selling existing shares.

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