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Tue 22 May 2018 11:29 AM

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Emirates NBD announces $3.2bn deal to acquire Turkey's Denizbank

Denizbank is Turkey's fifth largest private bank with $37 billion in assets

Emirates NBD announces $3.2bn deal to acquire Turkey's Denizbank

Emirates NBD will acquire Turkish lender Denizbank for $3.19 billion from Russia’s Sberbank, its largest ever acquisition, the bank announced on Tuesday.

Denizbank is the fifth largest private bank in Turkey, with $37 billion in assets, loans to customers amounting to $26 billion and deposits amounting to $25.2 billion as of March 31.

The bank has a network of 751 branches, with 708 in Turkey and 43 spread across Austria, Germany, Bahrain, Moscow and Cyprus that collectively service 11.8 million customers.

“Denizbank is one of the most attractive assets in the Turkish banking sector,” said Herman Gref, CEO of Sberbank. “The decision to sell Denizbank is prompted by a change in Sberbank Group’s international strategy and will allow us to focus further on the development of an ecosystem [in] Sberbank.”

Hesham Abdulla Al Qassim, vice chairman and managing director of Emirates NBD, said that the transactions will help establish Emirates NBD as a leading bank in the Middle East, North Africa and Turkey and “achieve meaningful diversification of its operations.”

According to Shayne Nelson, Emirates NBD group CEO, the deal is expected to accretive to shareholders in the first year. Emirates NBD will pay interest on the consideration for the period between October 31 2017 and the transactions closing date, which is expected later this year.

The deal is subject to regulatory approvals in Turkey, the UAE, Russia and other jurisdictions in which Denizbank operates.

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