The biggest banking transaction in Turkey since 2012 is Russia and the UAE

A report by Bloomberg has highlighted an agreement between Spirbank and Emirates NBD, whereby it buys £ 15.48 billion from Turkey's largest bank, Deniz Bank.

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According to the agency, the two banks have reached a final agreement on the details of the transaction: Spearbank will sell its 99.85% stake in Deniz Bank for 15.48 billion lire ($ 2.75 billion) instead of 14.6 billion lire (3.2 billion dollars). Has agreed to pay earlier.

In a report released Wednesday, the agency described the acquisition of Deniz Bank as the largest acquisition of Emirates NBD, the largest in Turkey since 2012, and is expected to be finalized by the end of the second quarter of this year.

A spokesman for the "Spirbank" said the delay by regulators to approve the deal, announced for the first time in May, led to a revision of its terms.

"It has been almost a year since the transaction was announced, so we can not react to what is going on in the world, so it was necessary to update its terms, taking into account the financial results of Diniz Bank and of its profits for 2018. "

Spearbank expects to receive a total of $ 5 billion from the sale of Deniz Bank, including capital and debt.

Since the announcement of the agreement 10 months ago, Emirates NBD has saved about $ 400 million, thanks to the devaluation of the Turkish lira against the dollar, Bloomberg said.

The lira has lost about 17% against the dollar since the announcement of the deal, falling to a record high in August amidst the diplomatic crisis between Ankara and Washington, as well as concerns about the deterioration of the Turkish economy.

"The worsening economic environment risks undermining the quality of bank assets, which increases the risk of public sector advocacy to support parts of the national banking and banking system," said Standard & Poor's. last month.

Spirbank may have chosen the right time to sell its stake in Turkey, given the pressure on the country's banking sector.

Turkey, however, is attracting investors from the Gulf: in 2006, the National Bank of Qatar acquired the Turkish unit of the Greek National Bank, while the Qatar Commercial Bank acquired the entire "Alternatifbank".

Deniz Bank, founded in 1938, is Turkey's fifth largest private bank with 751 branches, of which 708 are in Turkey and the rest in Austria, Germany, Bahrain, Russia and Cyprus.

Source: agencies