M&A activity saw a strong start to the year, with industry leaders including our friends at Fawry, Hassan Allam, CIRA, and Taqa Araba driving the momentum and local corporates actively reshaping their portfolios.

The first half brought major consolidation moves across fintech, ins., education, and energy — setting a dynamic tone for 2H.

IN FINTECH-

Fintech giant Fawry was easily the most acquisitive firm in 1H, kicking off its spree in February with the acquisition of a majority stake in local hospital and medical institutions manager Code Zone. That was quickly followed by a 56% stake in SME-focused financial services provider Virtual CFO, and a 51% stake in ERP software firm Dirac Systems. The moves — worth a combined EGP 80 mn — are part of the launch of Fawry Business, a platform offering digital transformation tools for SMEs and large enterprises.

Elsewhere in fintech: Basata upped its stake in Jordan’s MadfoatCom to 25%, part of its broader play to expand regionally and potentially raise its holding to 49%. EFG Finance exited its 51% stake in PayTabs Egypt in March, selling it to Saudi parent PayTabs Global as part of a portfolio streamlining effort.

EDUCATION-

CIRA Education submitted an MTO (pdf) earlier this month to up its stake in EGX-listed subsidiary Cairo for Educational Services (CAED). CIRA is looking to increase its stake in CAED to up to 90% from the current 69.4%. CIRA is looking to snap an additional 20.6% of its subsidiary — represented in 2.5 mn shares — at an initial price tag of EGP 32.7 per share. CIRA plans to keep CAED listed on the exchange if the MTO goes through.

INS.-

The ins sector also saw heightened M&A interest, with a major bid from Morocco’s Wafa Assurance to acquire up to 100% of the Egypt Kuwait Holding subsidiary Delta Ins. The bid values the insurer at around EGP 5 bn. Wafa is looking to take Delta Ins. private, with plans to delist the company from the EGX.

In June, insur-tech broker Bringy acquired healthtech startup HealthTag, which provides affordable medical access to the uninsured — a strategic move aimed at deepening Bringy’s footprint across the MENA region.

CROSS-BORDER TRANSACTIONS-

In June, Hassan Allam Utilities secured regulatory approval to acquire a 30% stake in Acwa PowerLuxor, a local subsidiary of the Saudi renewables player.

In May, Elsewedy Electric acquired a 60% stake in Dubai-based Thomassen Service, which includes Middle East and Africa operations, filters manufacturing, and an African business unit. The transaction marked Elsewedy’s entry into oil and gas services as it looks to diversify its energy portfolio.

DIDN’T MAKE IT ACROSS THE FINISH LINE-

Arla foods still has Domty on its radar: Danish dairy giant Arla Foods delayed submitting a mandatorytender offer (MTO) to acquire EGX-listed Domty in April, citing its inability to complete legal, financial, and technical due diligence while Domty proceeded with a spin-off. Arla emphasized that the deal is on hold, not off the table.

In March, Dice scrapped plans to acquire Twin Top for Real Estate Investment, citing pricing disagreements.

WHAT’S NEXT?

Looking ahead, consumer finance appears to be poised to take the lead in 2H with Al Ahly Capital and our friends at Taqa Arabia both hinting at transactions in the pipeline, signaling continued dealflow in sectors ripe for scale and integration. If the first six months are any indicator, 2025 could be one of the busiest M&A years in recent memory.

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