DenizBank buying Citi's consumer banking business in Turkey
MOSCOW. April 11 (Interfax) - Turkish bank DenizBank, which belongs to Sberbank of Russia , has signed an agreement to acquire Citi's consumer banking business, Sberbank said in a press release.
The transaction, subject to customary and regulatory approvals, is expected to close in the third quarter of 2013.
Under the agreement, DenizBank will take over a portfolio consisting of over 600,000 customers, over 1.2 billion Turkish lira (over $650 million) in gross assets, over 1.5 billion Turkish lira in deposits (over $800 million), as of December 31, 2012, as well as 22 consumer branches in Turkey and about 1,700 Citi consumer banking employees, the press release said.
Denizbank reported that it was in negotiations on the acquisition a month ago.
At the beginning of last December, Citigroup said that it was planning to sell or wind down its consumer business in Turkey, Pakistan, Romania, Uruguay and Paraguay, but that it would retain its corporate business in Turkey.
Sberbank acquired 99.85% of DenizBank from French-Belgian group Dexia for 6.469 billion Turkish lira (2.79 billion euro) on September 28 of last year. In addition, Sberbank is paying an extra 431 million Turkish lira (184 million euro) for DenizBank in connection with changes to the value of its net assets by the end of the year.
DenizBank's subsidiaries in Austria and Russia were included in the deal. At the end of last May, Sberbank agreed to hold exclusive negotiations with the Dexia group and became the sole contender for the Turkish asset, which was put up for sale as part of the group's restructuring.