Sign in
We have news of not one, but two pending acquisitions from Emirati players of foreign banks — with ADQ reportedly eyeing an acquisition in Turkey, and Emirates NBD inching closer to an acquisition of a stake in India’s Yes Bank.
#1- ADQ mulls acquisition of Turkey’s Odeabank: Abu Dhabi sovereign wealth fund ADQ has reportedly been in talks to acquire Turkey’s Odeabank for months, Bloomberg reports, citing people with knowledge of the matter. Final decisions are still pending, and it remains uncertain if ADQ will move forward with acquiring the bank, the sources disclosed. The Turkish lender, established by current majority shareholder Lebanon’s Bank Audi, has USD 2.6 bn worth of assets. Bank Audi holds a 76.4% stake in the Turkish lender.
Emirati players have an appetite for Turkish banks: First Abu Dhabi Bank (FAB) was reportedly close to finalizing talks to take a 61.2% stake in Yapi Kredi, but negotiations stalled as Koc sought a higher price, blocking FAB from conducting due diligence. Dubai Islamic Bank also announced plans back in September to acquire a 20% stake in Turkey’s TOM Group of Companies.
REMEMBER- Ties between the UAE and Turkey have warmed as of late: Last year, the UAE inked over USD 50 bn in agreements with Turkey during a visit from Turkish President Recep Tayyip Erdogan, including commitments to develop energy and natural resources projects and a trade agreement.
#2- Emirates NBD closer to snagging a stake in Yes Bank? Dubai’s Emirates NBD is reportedly in advanced talks with the State Bank of India (SBI) to acquire its full 24% stake in Indian Yes Bank, a share holding valued at USD 2.2 bn, Reuters reports, citing people familiar with the matter. While SBI has denied that talks have progressed, the Indian bank reportedly aims to reach an agreement by March 2025. SBI is expected to gain about INR 100 bn (USD 1.19 bn) if the sale goes through.
It’s not just SBI’s stake Emirates NBD is after: The bank is competing for a “majority 51% stake in Yes Bank to get sizable control of the bank’s business,” alongside Japan’s second largest bank Sumitomo Mitsui Banking Corp, a source told the newswire.
What’s next? The Reserve Bank of India has already greenlit SBI’s stake sale, and will now need to approve the bidders, who are currently reportedly conducting due diligence on the bank. The two banks are also hoping the regulator will relax the regulatory requirement that controlling shareholders reduce their stake to 26% within 15 years of the investment, one source said.
Background: News of Emirates NBD eying the Indian bank first surfaced in April, with Japan’s Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp. also reported to be bidding for the stake. Separately, Bloomberg had reported that First Abu Dhabi Bank (FAB) was also pursuing the 51% stake, valued at USD 5 bn, a claim which FAB denied.
It’s not the only Indian bank Emirates NBD has been tied to: Emirates NBD also reportedly secured a spot among the final bidders for a majority stake in state-owned Industrial Development Bank of India (IDBI), with the Indian government reportedly planning to sell a 60% stake in the bank.
OTHER M&A NEWS-
Germany’s Stada expands into the UAE with Fito takeover: German pharma company Stada has acquired Fito, a medical device used for treating burns, ulcers, wounds, and abrasions, from Egypt’s Leo Pharma, in a bid to expand its consumer healthcare business in the Mena region, according to a press release. The transaction hands it control of business operations in the UAE, Egypt, Kuwait, Oman, Saudi Arabia, and other key Mena markets. The financial details of the agreement were not disclosed.
