Two M&A stories have our attention this morning: The first ise-Finance’s bid to acquire two digital payments firms as it works to up its presence in the retail market, while a grocer owned by Saudi conglomerate Savola is reportedly interested in acquiring stores from struggling Egyptian retailer Alfa.

E-FINANCE EYES ACQUISITIONS-

e-Finance could acquire two companies: State-owned fintech firm e-Finance is in talks to acquire two retail-focused digital payments companies, a source at the company told Enterprise yesterday, without disclosing their identities. The first one was approved by the board earlier this month and is expected to wrap up by the end of the year, they said. A second acquisition is currently under study and could be finalized during 1H 2024.

ICYMI: In an EGX filing (pdf) earlier this month, the board said it will disclose the identity of the company it plans to acquire once negotiations are completed. Our source said that the two parties are in the final stages of negotiation over the size and the value of the stake.

The rationale:The acquisitions would facilitate e-Finance’s entry into the retail payments market, our source said. Subsidiary e-Khales currently operates in the market as a bill payment aggregator but does not yet operate its own point-of-sale machines. The retail market is projected to grow in size to EGP 1.5 tn by 2027-2028.

SAVOLA WANTS ALFA STORES-

Savola’s Panda joins other suitors bidding for Alfa stores: Saudi grocer Panda is among three supermarket chains vying to purchase six stores from struggling retailer Alfa Market, Al Mal reports, citing sources it says have knowledge of the matter. The company, owned by Saudi food conglomerate Savola, is reported to have already reached an agreement with Alfa to take over its Maadi branch. The company is expected to sell its branches in Sheikh Zayed and Zamalek by the end of the year, according to Al Mal.

Remember: Alfa is in trouble. Mounting debts have forced the company to enter talks with competitors to sell off assets. Alfa owns nine branches in Greater Cairo, most of which are leased.

Ezdehar drops out: The local private equity firm Ezdehar has given up talks with Alfa to purchase some of its stores after failing to agree on a selling price, the source said. Ezdehar Managing Director Emad Barsoum told us in September that the firm was eyeing four Alfa stores, without disclosing their locations.

Other investors are looking to purchase the brand: A consortium of retail investors is in advanced talks with Alfa to acquire its trademark rights, banking on its 5-mn strong customer base, Al Mal’s sources said.

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