Moody’s vies for control of MERIS: Global credit rating agency Moody’s is looking to raise its minority equity stake in its Cairo-based affiliate Middle East Rating & Investors Service (MERIS), according to a press release. The New York-headquartered firm is teeing up an offer that would give it majority interest in the domestic credit rating agency as it looks to broaden its presence in the region.

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MERIS is currently the only credit agency operating in Egypt. The firm was set up in 2003 as a joint venture between Moody’s and local consultant Finance and Banking Consultants International (FinBi). It issues domestic credit ratings for banks, companies, and structured finance transactions.

What they said: Monica Merli, Moody’s COO, said MERIS has been a key provider of domestic ratings for over two decades and that a larger stake would allow Moody’s to share more of its global best practices. MERIS founder Amr Hassanein said the move would allow the firm to deepen its offerings while maintaining a local focus.

What we know: Following the planned acquisition, MERIS will continue to operate independently with its own management team, rating methodologies, and credit opinions. The terms of the transaction were not disclosed, and it is currently pending regulatory approval.

IN CONTEXT- MERIS’ long run without competition is set to end. In June of last year, the Financial Regulatory Authority gave the greenlight to Beltone Financial and Italy’s CRIF Ratings to set up Egypt’s second credit rating agency.

The FRA has been pushing for more players since 2022, when it scrapped a rule requiring at least 10% foreign ownership of local agencies to encourage new entrants. Regulators argued at the time that MERIS couldn’t handle the market alone.

IN OTHER M&A NEWS-

CIB-led consortium’s bid for a piece of B Healthcare gets the regulatory green light: A consortium led by CIB will snap up a 50% stake in B Investments’ healthcare arm B Healthcare Investments after the Egyptian Competition Authority greenlit the move, according to a statement. It was previously reported that the acquisition will be made via a roughly EGP 500 mn capital increase.

The ownership breakdown: CIB will acquire around 25% of the company, Misr Ins. 10%, Misr Life Ins. 10%, and Al Baraka Bank Egypt 5%. Meanwhile, B Investments Holding will hold 25% of the company following the acquisition, while the Sovereign Fund of Egypt’s healthcare sub-fund and another investor will own the remaining 25%.

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