MM Group board approves 50% acquisition of Tamweel’s car factoring arm

M&A WATCH- MM Group’s board of directors approved last week the acquisition of 50% of Tamweel Group’s automotive factoring arm, the companysaid in a statement to the EGX (pdf). The statement did not disclose the value of the transaction. MM Group had earlier said that it was planning to complete its acquisition of Tamweel by the end of last May in partnership with a group of unnamed investors.

Background: MM Group, which focuses primarily on the distribution of consumer electronics and automobiles, is diversifying into financial services and wants to add factoring, reinsurance and mortgage finance as core business activities. Last June, a consortium led by Ebtikar, which is majority-owned by MM Group through its microfinance arm Vitas Egypt,completed the acquisition of Orascom Development Holding’s (ODH) 87% stake in Tamweel Group.