M&A WATCH-

Coca-Cola Beverages Africa sees ownership shakeup: Coca-Cola HBC AG (CCHBC) — the parent company of Coca-Cola HBC Egypt — is acquiring a 75% stake in Coca-Cola Beverages Africa (CCBA) in a transaction that values the company at USD 3.4 bn, according to a statement.

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The sellers: The Coca-Cola Company is selling a 41.52% stake — leaving it with 25% of the company — and Gutsche Family Investments is selling its entire 33.48% stake. Coca-Cola and the buyer agreed to a separate option agreement for CCHBC to acquire Coca-Cola’s remaining 25% within six years.

THE EGYPT ANGLE- CCHBC fully acquired the Coca-Cola Bottling Company of Egypt in 2022 in a USD 304 mn transaction. CCHBC is doubling down on the African market with its acquisition of a controlling stake in CCBA.

The bigger picture: “The transaction creates the second-largest bottling partner for the caffeinated soft drink by volume and marks another step in which the US firm is moving away from the business of bottling,” Bloomberg writes.

BANKING-

The central bank instructed banks to verify full payment of deposited capital for company incorporation or capital increases before issuing any deposit certificates, according to a circular (pdf) sent to banks yesterday. Banks are now barred from releasing funds deposited for company formation until the company is officially registered and its articles of association are approved.

What this means: Banks now have to ensure that the deposited amounts match the capital officially declared in a company’s documents before issuing certificates. The decision aims to prevent potential manipulation or the creation of shell companies based on unverified certificates while providing banks with stronger legal protection by standardizing the issuance process. This also reduces the risk of violating know your customer rules or facilitating the creation of companies for illegal purposes, such as money laundering or tax evasion.

However, the decision could slightly slow down new company registration processes, particularly in cases requiring a detailed review of capital documents or amendments. On the other hand, it enhances transparency and financial discipline in company formation and boosts local and foreign investor confidence in Egypt’s banking system, as it ensures that declared capital is genuinely deposited and operational. This boosts the credibility of newly registered firms.

MANUFACTURING-

The Egyptian Anode Blocks Company’s Ain Sokhna plant kicked off trial operations following the completion of the first phase of rehabilitation, according to a Public Enterprises Ministry statement. The first phase restored 125k tons of annual capacity, with output expected to double upon completing phase two in 1Q 2026. The move is part of a wider government initiative to revive and restructure idle factories.

MARKETING-

Al Ahly signed a EGP 2 bn, three-season sponsorship agreement with Qatar Airways, Al Borsa reports, citing unnamed sources. Al Ahly is prioritizing partnerships with foreign and Gulf companies to secure more hard currency. This comes as the club aims to strengthen its financial position and ability to pay out salaries in foreign currencies while reviewing existing sponsorships set to expire in 2025, according to one of the sources.

EXPANSION-

MCS sets foot in the UAE: Egypt-based IT solutions and cybersecurity company Mideast Communication Systems (MCS) has kicked off UAE operations with the launch of MCS Atlas, according to a statement. The move comes as part of the company’s regional expansion across the Gulf, Levant, and Eastern regions.

Alaa Bawab (LinkedIn) will serve as CEO and Managing Partner of the UAE office. He brings to the table over 25 years of experience, most recently as Lenovo’s general manager for infrastructure solutions in the Middle East and Africa.

STARTUP WATCH-

Money Fellows eyes regional expansion: Local fintech startup Money Fellows plans to enter the Moroccan market in 1Q 2026 under a partnership with Attijariwafa Bank and one of Morocco’s sovereign wealth funds, founder and CEO Ahmed Wadi told Al Borsa. The partnership will see the formation of a new Moroccan arm, in which Money Fellows aims to secure a majority stake, Wadi added. The move comes as part of Money Fellows’ plans to expand into four GCC and African markets by 2030.

Also in the cards: The startup plans to launch a new funding round for raising USD 60–80 mn during 2H 2026 to support its expansion strategy, Wadi said.

DEBT WATCH-

Real estate development company Inertia Egypt secured a EGP 5.2 bn shariah-compliant credit facility from a syndicate of state-owned banks, according to a statement (pdf). The six-year mudaraba financing package will help fund part of Inertia’s North Coast residential project Jefaira.

Who did what? Banque Misr, Banque du Caire, the National Bank of Egypt, Housing and Development Bank, and the Suez Canal Bank all acted as lead arrangers on the agreement. Banque Misr, Banque du Caire, and the National Bank of Egypt also acted as marketers, while Banque Misr served as the facility agent, security agent, and account bank. Matouk Bassiouny & Hennawy provided counsel, Engineering Consultants Group acted as an independent engineering consultant, and Baker Tilly served as a financial advisor.

EARNINGS WATCH-

Eastern Company saw its net income increase 5.8% y-o-y to EGP 9.7 bn in FY 2024-2025, according to its latest financial statement (pdf). Net revenues rose 82.8% y-o-y to EGP 37.4 bn during the year, supported by a 27.3% increase in local cigarette sales and a 17.4% rise in exports, according to a separate report (pdf) from the board.

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