MANUFACTURING-

#1- Turkish manufacturer Beko has officially set up shop in Egypt: Turkish home appliance manufacturer Beko has opened its first Egyptian home appliance factory in Tenth of Ramadan city at a cost of USD 100 mn, in what Prime Minister Moustafa Madbouly described as a success for the government’s strategy to attract major companies to Egypt, according to a cabinet statement. The factory was built by Hassan Allam Construction.

Beko is one of three big international companies that government wanted to attract, with the other two being China’s Haier — which inaugurated its eco-industrial park in Tenth of Ramadan City in May — and subsidiary of Germany’s Bosch, BSH Home Appliances, which will soon open its EUR 30 mn oven factory in Tenth of Ramadan City soon, according to Madbouly.

The golden license bears fruit: Beko is among a number of companies — including also BSH and Haier — that have received golden licenses to operate in Egypt, with Madbouly adding that the land for Beko’s complex was provided by direct allocation, allowing their factories to be completed faster.

All part of a plan to become a regional hub for home appliances: International companies have lately turned to Egypt to manufacture and export home appliances, with several companies moving in the past few months to set up factories in the country. Although there are no official figures, market studies suggest the electronic appliance market in Egypt reached EGP 126.7 bn in 2021, growing 24.5% y-o-y.

#2- EgyptAlum has four new projects in the works: EGX-listed Egypt Aluminum (EgyptAlum) is looking into setting up four new projects with some USD 6 bn, according to an EGX disclosure (pdf). The company is in talks with banks and local and foreign investment over potential partnerships for the new projects, CEO Mahmoud Agour told CNBC Arabia.

M&A-

#1- SEIC sells 1% stake in Abu Qir Fertilizers: The Saudi Egyptian Investment Company (SEIC) — a wholly-owned subsidiary of Saudi Arabia’s Public Investment Fund — has sold a 1.0% stake in Abu Qir Fertilizers for nearly EGP 556 mn, according to a company disclosure (pdf). After the transaction, SEIC and its related group now own 20.9% of the company.

#2- That’s a wrap on City Lab’s acquisition of Cairo Clinical Lab: City Lab and Cairo Clinical have inked a final investment agreement that will see the City Lab acquire Cairo Clinical Lab in a long-awaited agreement, according to a company press disclosure (pdf). Following Financial Advice Corporate Transactions’ (FACT) appointment as an independent financial advisor to provide a second opinion on Cairo Clinical Labs’ value, the two sides agreed on a price tag of EGP 59 mn.

EXPANSION-

Zilla Capital is stepping into the Saudi market: Investment bank Zilla Capital plans to launch its first project in the Saudi market, an asset management company, by the end of November, Chairman Wael Ziada told Asharq Business. The firm is looking into launching an investment fund in Egypt next year, with the final decision expected to be taken in less than a month.

Tags: