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

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.


Philippine jobless rate hits record 17.7% in April due to pandemic

Updated 05 June 2020

Philippine jobless rate hits record 17.7% in April due to pandemic

  • The Philippines is facing its biggest economic contraction in more than three decades
  • April’s 17.7 percent unemployment rate equivalent to 7.3 million people without jobs

MANILA: The Philippines’ unemployment rate surged to a record 17.7 percent in April, the statistics agency said on Friday, as millions lost their jobs due to a pandemic-induced lockdown that battered the economy.
The Philippines, which before the pandemic was one of Asia’s fastest growing economies, is facing its biggest contraction in more than three decades after the new coronavirus shuttered businesses and crushed domestic demand.
April’s unemployment rate, which is 7.3 million people without jobs, compares with 5.3 percent in January and 5.1 percent in April last year.
“We should not lose sight of the fact that this loss in employment is really temporary,” Economic Planning Undersecretary Rosemarie Edillon said in an online news conference.
The lockdown in the capital, Manila, which was one of the world’s longest and strictest, was relaxed as of June 1 to allow much-needed business activity to resume and soften the economic blow of the coronavirus, which has infected more than 20,000 in the country.