Emirates NBD Bank and Sberbank of Russia announced on Wednesday the completion of a deal that sees Dubai's biggest lender acquiring a 99.85 percent stake in Turkey's DenizBank.
The deal is both Turkey’s largest M&A deal since 2012 and the Dubai bank’s biggest acquisition.
Emirates NBD signed a new deal in April to buy Sberbank’s wholly-owned Turkish unit that could save it as much as $700 million.
The revised price tag of 15.48 billion lira ($2.7 billion) reflected a slump in the lira last year amid slowing economic growth in the country, Bloomberg said in June.
Hesham Abdulla Al Qassim, vice chairman and managing director, Emirates NBD said: “We are proud to mark a new chapter in our growth journey by welcoming DenizBank to the Emirates NBD family. 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. We are confident this partnership will unlock a host of benefits for our customers, investors, and stakeholders across all the markets we operate in.
"We look forward to working together to leverage our shared expertise, resources, and human capital to build a banking powerhouse that will lead the MENAT region in innovation and service delivery, while ensuring that our customers remain at the heart of our journey.”
Herman Gref, CEO, chairman of Sberbank said: “Since 2012, DenizBank has made meaningful progress across all key areas, delivering growth in sales of products and services via digital channels, implementation of advanced risk management practices and risk culture improvement, and the ability to shape a unique customer experience, maintain a balanced financial structure and meet the external challenges with confidence.
"The number of DenizBank clients more than doubled during this period and the assets increased more than 3.5 times. With the sale of DenizBank, Sberbank has completed a key stage in their international strategy change that will allow the bank to concentrate on the further development of Sberbank’s ecosystem in Russia.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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