DUBAI: Dubai’s Majid Al Futtaim (MAF), is in talks with Egypt’s Mansour Group, owned by billionaire Mohammed Mansour, to buy its supermarket business in a deal valued at $200m to $300m, three sources aware of the discussions said.
Mansour Group, also the largest distributor of General Motors cars in Egypt, is aiming to sell supermarket chain Metro and discount grocery store Kheir Zaman, the sources said, speaking on condition of anonymity as the matter is not public.
The ongoing discussions signal increased appetite by Gulf-based firms to expand their presence in the most populous Arab state at a time when valuations are low due to the political strife in the North African country.
Gulf banks have bought assets from their European counterparts in Egypt but the interest in Mansour Group’s supermarket business shows the focus may now be spreading to other sectors such as retail where growth prospects are seen promising in the longer term.
MAF is the sole franchisee of French hypermarket chain Carrefour in the Middle East.
Due diligence on the deal is currently under way and a decision could be taken as early as January, one of the sources said.
MAF Group declined to comment on the report. Mansour Group was not available for immediate comment.
Metro is Egypt’s largest supermarket chain with more than 40 outlets in 10 cities. Kheir Zaman, a discount grocery store, has over 2,000 employees and 30 stores throughout the country.
Unlisted MAF, the franchisee for Carrefour hypermarkets in 19 countries and operator of nearly a dozen malls across the Middle East and North Africa, is keen on expanding in Egypt through acquisitions, according to one Dubai-based banking source who is aware of the discussions.
Reuters
