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.
Emirates NBD closes in on Denizbank acquisition
Emirates NBD closes in on Denizbank acquisition
Saudi Finance Ministry acquires 86% stake in Binladin Group through debt-to-equity conversion
RIYADH: The general assembly of Binladin International Holding Group has approved a capital increase through the conversion of existing debt into equity, a move that results in the Saudi Ministry of Finance acquiring an 86 percent ownership stake in the company, according to a report by Al-Arabiya.
The decision marks a significant step in restructuring the group’s financial position and reflects shareholder confidence in the company’s long-term strategy and operational recovery.
In a statement cited by the Al-Arabiya report, Binladin Group’s board of directors said the approval underscores trust in the company’s future direction and reinforces its development and growth objectives.
Under the approved arrangement, outstanding financial obligations will be settled through the issuance of new shares, allowing the company to substantially reduce its debt burden and strengthen its balance sheet.
As a result, the Ministry of Finance will become the group’s majority shareholder, aligning the government directly with the company’s growth trajectory while supporting its financial stability.
The transaction follows earlier measures taken by the Ministry of Finance to stabilize the group’s financial structure.
Previously, Saudi Arabia’s National Debt Management Center announced the successful completion of a syndicated loan facility on behalf of the ministry, arranged with a consortium of local and international banks. The facility totaled approximately SR23.3 billion ($6.2 billion) and was part of a broader framework to address the company’s liabilities.
The Ministry of Finance had earlier outlined a series of coordinated steps with Binladin Group to settle outstanding cash obligations to banks and restructure the company’s financial commitments. These measures were designed to restore operational stability and enable the group to continue executing its portfolio of large-scale construction projects.
The move is seen as a continuation of the government’s broader support for the construction and infrastructure sector, a key pillar of Saudi Arabia’s economic transformation agenda under Vision 2030.
The restructuring is expected to help ensure the timely completion of strategic projects, safeguard employment, and enhance the sector’s attractiveness to investors.
Commenting on the development, Mohammed Al-Tayyar, a political economy researcher, said the capital increase through a debt-to-equity swap significantly strengthens Binladin Group’s financial standing. He noted that the transaction is likely to bolster investor confidence, improve governance and transparency, and open up new opportunities for sustainable growth as the company moves forward under a more stable financial framework.
