Emirates NBD has agreed to buy Turkish lender Denizbank for 14.6 billion liras ($3.19 billion) from Russia’s Sberbank.
Emirates NBD said in January it had started initial strategic talks with Sberbank about a possible purchase of the Russian lender’s stake in Denizbank.
The deal will help Emirates NBD establish itself as a leading bank in the Middle East, North Africa and Turkey, vice chairman of Emirates NBD, Hesham Abdulla Al Qassimin, said a statement.
According to him, the Dubai-based lender will also achieve meaningful diversification of its operations, both in new countries and in a broad range of business segments.
"The transaction is expected to be accretive to shareholders in the first year," Emirates NBD Chief Executive Officer Shayne Nelson said.
The closing of the deal is subject to regulatory approvals in Turkey, Russia, the UAE and other relevant jurisdictions, where Denizbank operates, Reuters reported.
Emirates NBD, Dubai’s biggest lender, will pay interest on the consideration for the period between Oct. 31, 2017 and the transaction’s closing date, expected later in the year, the two banks said in a joint statement.
Denizbank, the fifth largest private bank in Turkey, has assets of 169.4 billion liras and operates 751 branches including 43 outside Turkey, while Emirates NBD banks in the UAE, Egypt, Saudi Arabia, India, Singapore, the United Kingdom, and has representative offices in China and Indonesia.
