Emirates NBD reaches new agreement to buy Turkey’s Denizbank for $2.77bn

Emirates NBD is Dubai’s largest lender. (File/Shutterstock)
Updated 03 April 2019
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Emirates NBD reaches new agreement to buy Turkey’s Denizbank for $2.77bn

  • The current offer is lower than the $3.2 billion agreement reached last year
  • The transaction is expected to be completed by the end of the second quarter, subject to regulatory approval

DUBAI: Dubai’s largest lender Emirates NBD will buy Turkey’s Denizbank from Russia’s state-owned Sberbank for less in dollar terms than previously agreed following the devaluation of the Turkish lira.

Emirates NBD will buy Turkey’s fifth largest private bank for $2.8 billion (15.48 billion lira), the Dubai bank said on Wednesday, compared to the 14.6 billion lira announced in May, after reaching a new agreement with Sberbank.

Although the lira value is higher, the dollar value in May when the deal was announced was put at the equivalent of $3.2 billion, or about $400 million more that the new price.

The lira has tumbled over concerns about the central bank’s independence and Ankara’s worsening ties with Washington.

Dubai-based Arqaam Capital said the new deal represents a 16 percent discount from the original acquisition price due to the lira’s depreciation

Russia’s biggest bank by assets bought Denizbank in 2012 for about $3.5 billion when it wanted to establish a presence abroad. Selling Denizbank, the biggest asset held by Sberbank outside Russia, is part of a shift back to the domestic market.

Denizbank’s equity amounted to 15.51 billion lira as of December 31, Emirates NBD said in a bourse statement.

The deal will help Emirates NBD diversify its business and establish itself as a leading bank in the region, the bank’s vice chairman Hesham Abdulla Al-Qassim said in May.

The deal is expected to close by the end of the second quarter, subject to regulatory approval, Emirates NBD said.


Egypt agrees to pay Israel $500 million to end gas dispute

Updated 17 June 2019
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Egypt agrees to pay Israel $500 million to end gas dispute

CAIRO: Egypt says it has struck a deal with the state-owned Israel Electric Corp. to settle a fine for halting deliveries of natural gas.
A statement from Egypt’s Petroleum Ministry said the settlement deal, which was signed Sunday, would reduce the $1.7 billion fine to $500 million.
It says Egypt will pay the amount over eight and a half years.
In return, the Israeli company would drop other claims resulting from a 2015 arbitration decision.
Israel Electric had sued the state-owned Egyptian General Petroleum Corporation and Egyptian Natural Gas after a 2005 deal to export natural gas to Israel collapsed in 2012 amid militant attacks on a pipeline in the Sinai Peninsula, where Egypt has been battling insurgency for years.
Israel relied on the pipeline to meet its energy needs.