Brookfield And Others Vie For Mashreq Payments Unit Purchase

Brookfield Asset Management and Network International Holdings could be in the running to buy UAE lender Mashreqbank’s payment unit, Bloomberg wrote.

The payment unit handles the processing of transactions for transactions made with credit and debit cards. Mashreq said earlier in the year that it wasn’t selling the business, but it’s since carved the payments arm into a new unit called NeoPay.

The unit could reportedly be valued at $500 million to $700 million. Mashreq has gotten the initial bids and is looking into possible buyers – though in the end, it may end up deciding to keep the unit, as no decisions have reportedly been made.

Another potential buyer is buyout firm TPG.

Mashreq is working alongside Goldman Sachs to tap possible buyers for the unit.

Bloomberg noted that a successful bid for Mashreq’s payment arm would let Brookfield consolidate it with another payment business from Mashreq rival First Abu Dhabi Bank, which sold 60% of it to Brookfield recently.

Mashreq also recently rolled out a non-banking business services platform for smaller businesses, titled Mashreq Business Banking Value Added Services, PYMNTS wrote in August.

Read more: UAE-Based FI Mashreq Launches Non-Banking Services Platform for Small Businesses

It will allow businesses access and discounts to several FinTechs, startups and various other service providers. It will offer things like human resources, office space and cloud storage. The company said the concept involved a one-click platform within Business Banking to integrate other things later.

The service will also add features like the partnership with cloud-based HR and payroll software solution EmiratesHR, and the company has been doing work with Letswork, which offers over 100 co-working spaces, hotels and work-friendly cafes in the UAE for use by freelancers and growing companies.

“We understand that entrepreneurship is at the heart of a sustainable, purposeful economy, which is why Mashreq has always been at the top of the race when it comes to fostering entrepreneurship in our region,” said Thomas Baxendale, head of business banking ecosystems, Mashreq. “We are therefore delighted to be the first bank to partner with startups and FinTechs in a way that provides our business banking customers with access to their services.”