BBVA's agreement to acquire 24.89% of Garanti Bankasi from GE Money and the Turkish Dogus Group for $5.76bn has implications that will be felt beyond Turkey, according to Ferit Sahenk, chairman of both Garanti and Dogus Group. He says the deal has been worked out carefully among the three parties concerned and will enhance the regional ambitions of the Turkish bank.
Under the sale agreement signed in November, BBVA will acquire GE Money's 18.6% share in Garanti Bankasi for $3.7bn and a 6.29% stake in the bank from Dogus Group, one of Turkey's biggest conglomerates, for $2.06bn. The accord will give Dogus Group and BBVA, Spain's second biggest banking group, each a 24.89% share in the Turkish bank. GE Money will retain a share of about 2%. The remaining shares are publicly owned and traded on the Istanbul and New York stock exchanges. The share transfers are pending the approval of Spanish and Turkish banking authorities, but are expected to be concluded early in 2011. The deal will make BBVA the biggest foreign investor in Turkish banking.
