Spanish banking firm BBVA has increased its stake to 85.97% in its Turkish arm Garanti BBVA.
BBVA paid approximately €1.41bn for the deal, which is part of its efforts to bolster its presence in emerging markets to capitalise on greater growth opportunities.
Go deeper with GlobalData
The acquisition of an additional 36.12% stake in the Turkish franchise will allow the Spanish bank to infuse more capital without launching an additional tender offer.
“Throughout the years Turkey has become a strategic market for BBVA. The potential of growth for the Turkish economy, which BBVA estimates at 3% annually; its demographics with more than 85 million people and an average age of 33 years; its commercial ties with Europe and its low banking penetration, with household debt ratio below 20% of Turkey’s GDP; they all make it an attractive market in the long term,” the lender said.
Last month, BBVA increased the offer price by 23%, assuming full subscription by all Garanti BBVA minority shareholders, the deal was valued at approximately €1.98bn.
Despite the updated price, the new bid was lower than what was initially announced in November 2021, because the Turkish currency has slumped over 28% since then.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataGaranti BBVA is said to have around 20% market share among private banks in loans in local currency and deposits.
As of 31 March 2022, the Turkish bank had 21,680 employees, 5,606 ATMs and 1,003 branches.
