Britain buys Egypt's Suez Canal share

Background. Khedive Isma'il Pasha's policies placed the Khedivate of Egypt in severe debt, necessitating the sale of its shares in the Suez Canal Company. The canal, opened in 1869, was strategically vital to Britain, with approximately 80% of its users being British ships in 1875. Isma'il Pasha held a 44% share in the company, and in November 1875 the Khedive was seeking to sell his shares to a French firm, prompting Disraeli's government to move to secure the deal.

The Transaction. The sale was facilitated by London banker Henry Oppenheim, who informed the editor of the Pall Mall Gazette that the Khedive was seeking to sell his shares. Disraeli's government moved quickly to secure the deal, purchasing the shares for £3,976,582. Unable to raise further loans, Isma'il Pasha sold the Egyptian and Sudanese shares with the assistance of Yacoub Cattaui, and the sale was immediately followed by the beginning of direct intervention by the Great Powers in Egypt and Sudan.