Of Special Interest


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25th May 2012

Sberbank set to buy Denizbank

Sberbank is reported to be close to finalising a deal to buy Denizbank from Dexia.

Sberbank was one of three banks that initially expressed interest in buying the Turkish Denizbank. It was apparently the first to drop out, leaving Qatar National Bank to hold solus talks with Dexia. These talks did not result in a deal and then HSBC had an attempt which appeared not to last long. Earlier this month it was reported that Sberbank had expressed a new interest in the purchase.

Price is said to have been the issue with Dexia seeking around 1.5 times book. This is high post-financial-crisis, although many banks are seeking an entrance to Turkey and therefore is perhaps achievable. Such a multiple would suggest a purchase price of around $4bn (€3.2bn £2.6bn ¥318bn Y25.3bn). Sberbank has made no secret that it wants a presence in Turkey.

Turkey is expected to have high economic growth during the next 15 years and is one of O'Neill's Growth 8 countries - the expanded model developed from his earlier BRIC country idea.