Burgan acquires Turkish bank for $351m
Kuwait, December 22, 2012
Burgan Bank, a leading Kuwaiti bank with a regional presence in Jordan, Iraq, Algeria and Tunisia, said it has acquired 99.26 per cent stake in Turkish lender Eurobank Tekfen from Eurobank EFG, the third largest bank in Greece, for KD98.88 million ($351 million).
With this acquisition, Eurobank Tekfen and its subsidiaries (EFG Istanbul Equities & EFG Leasing) are now fully owned subsidiaries of Burgan Bank.
Burgan Bank has received all the regulatory approvals in Kuwait and Turkey for this acquisition.
Announcing the successful completion of the deal, Burgan chairman Majed Essa Al-Ajeel, said: “The Turkish economy and banking sector have continued to demonstrate solid performance and resilience throughout the recent global financial crisis and offer opportunities for continued long term expansion."
"Turkey’s young and rapidly growing population, combined with its strategic positioning between Europe and the Middle East offers strong potential for further economic growth in the medium-to-long term, with increasing business flows with the Middle East.”
CEO Eduardo Eguren said the deal is in line with Burgan's corporate strategy of expanding its footprint, scale and capabilities through strategic acquisitions.
"Burgan will gain access to the attractive Turkish banking market through an established franchise led by seasoned management team and offering broad banking services to Corporate, SME and Retail clients at an attractive pricing level with no creation of goodwill," observed Eguren.
"Our presence in Turkey will further enhance and support Burgan Bank’s regional expansion strategy," he added.-TradeArabia News Service