EFG-Hermes Holding SAE had recently stated that the joint venture plans with QInvest LLC will not push through unless the Egyptian market regulator approves the same. The approval needs to be in force by next month before its expiry.
The main issue arises from the co-CEOs of the Cairo, Egypt-based financial institution who are currently standing trial. The Egyptian Financial Supervisory Authority was formally notified of the deadline with a promise of at least US$300 million of foreign direct investments to the country.
Aside from the Egyptian authorities, the JV has already obtained approval from other countries. QInvest is a unit of Qatar Islamic Bank.
The two banking institutions are seeking to create an investment bank operating in the Middle East, Turkey, parts of Africa and southeast Asia. The transaction would feature EFG Hermes investment banking core, asset management expertise as well as brokerage businesses.
Should no approval be made by the Egyptian authorities, then 'the implementation of the partnership agreement will become very difficult', according EFG Hermes. The deadline is set for May 2, 2013 midnight.
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