Majid Al Futtaim, the Dubai retailer is in discussions with Mansour Group for the purchase of the largest supermarket chain in Egypt. This was confirmed by two sources who spoke on condition of anonymity.

Thus, a due diligence process has been conducted for the purchase of the Metro Chain and Kheir Zaman discount grocery store according to one of the sources. Currently, the retail business of the Mansour Group is estimated to be worth between US$200 million and US$300 million.

The source also confirmed that both companies have agreed to the deal and a few minor details are just being threshed out for the finalization of the agreement.

This is a sign of the increasing interest by Gulf companies in expanding into the most populous Arab country at the heels of the Arab Spring. The country is currently being burdened by low valuations because of the current political and economic instability in the country.