Brookfield Asset Management Inc is in talks to buy the payments business of the UAE’s largest lender First Abu Dhabi Bank, according to people familiar with the matter.
The Canadian investor is the frontrunner to acquire the Magnati unit, the people said, asking not to be identified as the matter is private.
A deal will likely value Magnati at more than $1 billion, the people said.
Deliberations are ongoing and while Brookfield is in pole position, other parties could still emerge, according to the people.
A representative for Brookfield declined to comment, while a spokesperson for First Abu Dhabi Bank didn’t immediately provide comment.
FAB completed the carveout of its payments business into a fully-owned subsidiary in April and has been working with Morgan Stanley to identify suitors for the business, Bloomberg News has reported.
A sale would add to a flurry of dealmaking in the payments industry, with banks seeking to offload operations as they struggle to compete with specialist providers.
Brookfield is an active investor in the Middle East and is among parties that made first-round bids for a minority stake in Kuwaiti conglomerate Alshaya Group’s Starbucks franchise.
FAB has a market value of $60 billion. It’s separately bid for a majority stake in EFG Hermes, valuing the firm at $1.2 billion, in what’s likely to be the biggest acquisition yet in Egypt by the lender.
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