EFG Hermes, QInvest eye major investment bank

26/03/2012 22:41 AST

EFG Hermes Holding and QInvest have announced a deal to explore a potential strategic alliance aimed at creating a leading investment bank with operations in the Arab world and beyond, covering the Middle East, Africa, Turkey, and South and South East Asia.

Both institutions will immediately begin assessing potential synergies and proceed with discussions, following which an announcement as to whether an agreement has been reached or not will be made, said a statement.

In the case of an agreement, the parties will announce the general framework of a joint venture and a timetable for its implementation, subject to the appropriate regulatory approvals, it said.

The businesses included within the scope of discussions will be Securities Brokerage, Asset Management and Investment Banking. EFG Hermes Private Equity will be excluded from the scope of discussions, it said.

QInvest said: "We look forward to establishing a potential alliance with EFG Hermes that would position our firms to leverage continuing economic growth and play a pivotal role in the long-term development of the region.

"The alliance would enable us to bring the expertise necessary to capitalize on the desires of many regional and foreign investors who are seeking to play a significant role in the region's economic development and are willing to invest across the Arab region, Africa and Asia. By bringing together our own capabilities at QInvest, with EFG Hermes' position as the region's largest investment banking presence across the Arab markets, we are confident we can create the leading investment banking platform of choice across Africa, the Arab world and South / South East Asia," QInvest added.

EFG Hermes said: "We share a common vision with respect to the future prospects of various markets including Egypt and other high-potential economies in Africa and Asia."

"A potential alliance with QInvest through which we can combine our expertise in our chosen businesses would be a significant turning point in supporting investments in the Arab world. Our primary objective in these discussions will be to create an investment banking platform that will play a vital role in the flow of foreign capital into the region while enabling Arab investors to participate in future investment opportunities in the regions that will fall under the umbrella of this new platform," EFG Hermes said.

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