Emirates NBD closes in on Denizbank acquisition

Emirates NBD was in preliminary talks to buy Denizbank from Russia’s Sberbank in January, but the plan met with resistance from President Tayyip Erdogan. (Reuters)
Updated 22 March 2018
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Emirates NBD closes in on Denizbank acquisition

ANKARA/DUBAI: Emirates NBD could agree to buy Turkey’s Denizbank within weeks, after intense lobbying by the Turkish bank to convince President Tayyip Erdogan of the benefits of the potential $5.3 billion deal.
Dubai’s biggest bank, Emirates NBD said it was in preliminary talks to buy Denizbank from Russia’s Sberbank in January, but the plan has met resistance from Erdogan.
While Erdogan does not have direct control over Turkey’s banks, the president could potentially block any deal by telling the country’s BDDK banking watchdog not to approve it.
Repeated efforts by Denizbank’s chief executive to persuade Erdogan of the case for the takeover illustrate the president’s important role in sealing major deals in Turkey.
Although it still requires approval, the deal is expected to be agreed in the next few weeks.
The BDDK did not respond to a request for comment.
“I’m not saying this deal will fall through, but it wouldn’t be realistic to say these developments are supportive of the negotiations,” one senior official in Ankara said.
Emirates NBD, Sberbank and Denizbank all declined to comment, as did Erdogan’s office.
Denizbank Chief Executive Hakan Ates has met Erdogan and other senior officials in Ankara over the past month in an attempt to convince them that the deal would be positive for Turkey’s banking system.
Denizbank is Turkey’s ninth-largest lender by assets, making it a relatively small player in a fast-growing market. Sberbank, which is selling Denizbank as part of a broader regional strategy shift, paid around $3.5 billion for it in 2012.
Shares in Denizbank have risen around 70 percent this year, helped by news of the talks, giving it a $5.3 billion market value.
Emirates NBD, which previously acquired BNP Paribas’ Egyptian business, has been scouting for opportunities in the Turkish banking sector for several years as part of its international expansion.


VW to stop doing business in Iran: Bloomberg

Updated 20 September 2018
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VW to stop doing business in Iran: Bloomberg

  • VW will still be able to do some business in Iran under a humanitarian exception
  • VW has scrapped plans it announced in July last year to sell cars in Iran for the first time in 17 years

WASHINGTON: Volkswagen has bowed to American pressure stemming from the US rejection of the multi-party nuclear deal and will end almost all business in Iran, Bloomberg News reported Wednesday.
The accord was reached Tuesday after weeks of talks between the German auto giant and the administration of President Donald Trump, said Richard Grenell, the US Ambassador to Germany, according to Bloomberg.
VW will still be able to do some business in Iran under a humanitarian exception, Bloomberg added.
In May, Trump pulled the US out of the deal it reached with Iran and five other countries in 2015. That accord lifted sanctions against Tehran in exchange for restrictions on its nuclear program.
Now, the US is reimposing those sanctions.
Bloomberg said VW has scrapped plans it announced in July last year to sell cars in Iran for the first time in 17 years.