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.

Saudi companies display latest technologies at Dubai Airshow

Updated 17 November 2019

Saudi companies display latest technologies at Dubai Airshow

DUBAI: Over 25 Saudi companies and government institutions are taking part in the Dubai Airshow hoping to snag deals for their latest defense and aviation technologies being showcased at the biennial event.

The Middle East’s biggest aviation gathering opened on Sunday sans major announcements for big-ticket aircraft purchases from Gulf flagship carriers, maybe also due to dozens of deals already been previously signed and the planes just waiting to be delivered.

Among the major Saudi companies in the event include the Saudi Arabian Military Industries (SAMI), fully owned by the Public Investment Fund, which has operations from aeronautics, land systems, naval systems, weapons and missiles and defense electronics.

SAMI aims to become among the top 25 companies globally by 2030 and to localize military spending, in line with the Kingdom’s vision.

Among other notable Saudi companies and institutions with a presence at the airshow are Saudi Airlines, flynas, The General Authority of Civil Aviation and the King Abdulaziz City for Science and Technology.

Meanwhile, Saudi INTRA Defense Technologies signed a Memorandum of Agreement with multinational defense company Hensoldt for the co-development and co-production of advanced electro-optic systems, as well as a joint venture agreement with EM&E for the transfer of technology and localization of the precision mechanical industries in the Kingdom.

ESEN Saudi, a hi-tech defense and aerospace engineering and production company, was also launched at the Dubai Airshow’s opening day.

Middle East Propulsion Company, which specializes in maintenance, repair and operations (MRO) for the Middle East, was also one of the Saudi companies on site. The company, which boasts of a workforce comprised of Saudi nationals of about 80 percent, aims to expand their services across the GCC and wider Middle East region.

Al-Salam Aerospace Industries meanwhile has on display latest advancements in the manufacture of key components for the F-15 fighter jet.