The First Abu Dhabi Bank (FAB) announced it has withdrawn its offer to purchase a majority stake in Egyptian investment bank EFG Hermes, citing ongoing global market uncertainty and volatile macro-economic conditions, according to a statement to Abu Dhabi Securities Exchange (ADX).

FAB’s non-binding offer would have seen the bank acquire at least 51% of EFG Hermes, at an estimated price of EGP 19 per share, valuing the company at $1.2 billion. FAB has also submitted its decision to Egypt’s Financial Regulatory Authority (FRA).

"After careful consideration and in the context of ongoing global market uncertainty and volatile macroeconomic conditions, First Abu Dhabi Bank has decided to withdraw its non-binding offer submitted on 9 February 2022," FAB said in a statement.

Although it has decided to take a step back from the acquisition, FAB stressed that “Egypt remains a strategically important market for FAB, where the bank will continue to support its customers and employees and continue to invest in the growth of its well-established partnerships and operations in Egypt."

According to Reuters, who cited two unnamed sources close to the matter, the process also dragged because the deal required approval from different regulatory bodies.

FAB already has a substantial stake in the country, owning banking licenses in Egypt for both its own subsidiary and the Egyptian assets of Lebanon's Bank Audi that it acquired last year.