DUBAI, United Arab Emirates (AP) — Middle East banks EFG Hermes and QInvest say they have reached a deal to combine some of their operations to create a joint investment bank meant to service the Arab world and beyond.
The deal announced late Friday will give Qatar’s QInvest a 60 percent stake in the new company. It will inject $250 million into the new bank.
Cairo-based EFG Hermes will own the rest of the new company, EFG Hermes Qatar. It has the right to sell its remaining stake for about $165 million after a year.
The companies said in March they were in talks to merge some of their operations.
EFG Hermes is Egypt’s largest investment bank. QInvest is a privately held bank based in the energy-rich Gulf state of Qatar.