Istanbul, May 23 (DHA) - Dubai’s biggest lender Emirates NBD has agreed to buy Turkey’s Denizbank from Russia’s state-owned Sberbank for $3.2 billion to help establish itself as a leading bank in the Middle East, North Africa and Turkey.
Denizbank CEO Hakan Ateş has said the top management will remain and there will not be any change in the name of the lender.
\"Our top management will remain. Our name will also remain the same. One of the requests of Emirates NBD was to keep the top management the same\" he said.
Denizbank is the fifth-largest private bank in Turkey and the biggest asset held by Sberbank outside Russia. The sale is part of a strategy by Russia’s top lender to divest overseas businesses to focus on its domestic market.
The deal is the biggest ever acquisition by Emirates NBD, which had said in January it was in talks to buy the Russian lender’s stake in Denizbank.
The deal will help Emirates NBD diversify its business and establish itself as a leading bank in the region, the company’s vice chairman, Hesham Abdulla Al Qassim, said in a statement on May 22.
Denizbank has assets of 169.4 billion liras ($37.25 billion) and operates 751 branches, including 43 outside Turkey, while Emirates NBD has banks in the UAE, Egypt, Saudi Arabia, India, Singapore, the United Kingdom, and offices in China and Indonesia.
“By acquiring Deniz, Emirates NDB can diversify its credit risk as it has concentrated exposure to Dubai government,” said Shabbir Malik, a banking analyst at EFG Hermes in Dubai.
“Turkey is an important trading partner for the UAE, and Emirates NBD can serve UAE customers which have trade ties with Turkey. That said, the banking system is crowded and there is strong market share concentration in the top seven banks.”