Burgan Bank, one of Kuwait’s leading banks with a regional presence in Jordan, Iraq, Algeria and Tunisia, announced today that it has received approval from the Central Bank of Kuwait on its Deal to acquire Eurobank Tekfen in Turkey from Eurobank EFG. The bank is still awaiting final approval from Turkey’s regulators to complete the deal.
Earlier in 2012 (April), Burgan Bank announced that it has entered into a Share purchase agreement (SPA) with Eurobank EFG to acquire a 99.26% stake in Eurobank Tekfen.
Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank said: “We thank the Central Bank of Kuwait for their continuous support and we are looking forward to receiving the approvals from Turkey’s regulators to move forward with the transaction. With this acquisition, Burgan Bank will gain access to the attractive Turkish banking market through an established franchise offering holistic banking services to Corporate, SME, Private banking and Retail clients. Our presence in Turkey will further enhance and support Burgan Bank’s regional expansion strategy.”
The Turkish economy and banking sector have continued to demonstrate significant positive performance and resilience throughout the global financial crisis and offer opportunities for continued long term expansion. “The consideration of acquiring Eurobank Tekfen reflects a unique opportunity to enter a key market with a fully operational and diversified banking platform.” added Al-Ajeel.
“Burgan Bank’s strong balance sheet will enable us to self-finance the transaction once finally approved by the regulators in Turkey with manageable impact on our capital adequacy ratio, which will remain at adequate levels, and well above the central bank’s requirements,” concluded Al-Ajeel.
Eurobank Tekfen was established in 1989 and enjoys an extensive geographic coverage within Turkey through its network of 60 branches.