Emirates NBD completes deal for Turkey’s Denizbank
The Dubai-based lender acquired a bank with 749 branches and 14,000 employees
Emirates NBD completed the acquisition of Turkey’s Denizbank from Russia’s Sberbank after gaining regulatory approval for the deal in all three countries last month.
The Dubai-based lender said that following completion, it now owns 99.85 per cent of Denizbank, the fifth-largest bank in Turkey with 749 branches and close to 14,000 employees.
“While there is considerable cross-border trade and business activity across the MENAT region, only few banks can claim to have a strong pan-regional presence. Emirates NBD is now looking to change this with DenizBank, and we are pleased to have found a partner that has built a strong franchise and reputation as a leading banking group,” said Hesham Abdulla Al Qassim, vice-chairman and managing director, Hesham Abdulla Al Qassim of Emirates NBD, Dubai's largest bank.
Emirates NBD first announced it had agreed a deal to buy Denizbank in May 2018 for 14.6 billion Turkish lira (Dh9.7bn), which equated to around $3.2 billion at the time of the announcement. However, following a dramatic decline in the value of the Turkish lira during the second half of 2018, terms were renegotiated and a new deal was announced in May this year.
Under the new terms, Emirates NBD agreed to pay a slightly higher price of 15.48 billion Turkish lira, but in US dollar terms this equates to a rate of around $2.8bn (Dh10.28bn) at current prices, meaning a saving of around $400 million since the deal was first announced.
Updated: July 31, 2019 06:53 PM