EFG Hermes Expands its Pakistan Footprint with Intermarket Merger
Deal News | Nov 25, 2024 | EIN
EFG Hermes, a significant player in the Middle East and Africa's financial industry, has completed the merger of its equity brokerage subsidiary in Pakistan with local firm Intermarket Securities. This merger reflects EFG Hermes' broader strategic objectives to diversify its revenue avenues and reinforces its presence in the Pakistani market, an engagement that began in 2017 as part of their long-term growth strategy. Despite initial setbacks when Pakistan failed to leverage its upgraded MSCI Emerging Market status to increase trading volumes, EFG Hermes remained committed. Through fluctuating revenues and financial losses, the Egyptian investment bank continued to assert its presence, even earning accolades as the Best International Brokerage Firm in Pakistan in 2022. This move underscores both the challenges and potential for foreign investors in navigating Pakistan's economic and regulatory landscapes.
Sectors
- Financial Services
- Investment Banking
Geography
- Pakistan – The location of the merger involves EFG Hermes' acquisition and subsequent merger with Intermarket Securities, reflecting their strategic intentions within the Pakistani financial market.
- Egypt – EFG Hermes is originally an Egyptian investment bank, and its strategic operations in foreign markets are centrally planned from Egypt.
Industry
- Financial Services – The merger between EFG Hermes and Intermarket Securities is significant within the financial services sector, specifically relating to brokerage and investment banking in emerging markets.
- Investment Banking – This pertains to EFG Hermes' operations in securities brokerage, research services, and investment banking advisory services offered in Pakistan.
Financials
- Rs289 million – Peak revenue achieved by EFG Hermes Pakistan in 2023.
- Rs108 million – Largest after-tax loss posted by EFG Hermes Pakistan in 2023.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| EFG Hermes | Bidding Companybuyer | Company | A leading financial services corporation in the Middle East and Africa, involved in investment banking, brokerage, and asset management. |
| Intermarket Securities | Target Company | Company | A prominent local brokerage firm in Pakistan with which EFG Hermes has merged operations. |
| Invest and Finance Securities Ltd. (IFSL) | Other Company | Company | The initial acquisition of EFG Hermes in Pakistan aimed at establishing its investment banking operations in the country. |