First Abu Dhabi Bank (FAB.AD) has announced that it is aware of recent media speculation. The Bank is focused on executing its growth strategy and continuously maintaining strong returns to its shareholders.
The bank states that it may engage in strategic discussions on growth potential to its operational network that has a strategic fit with its overall banking operation and that material disclosures will be made to the market in accordance with the regulatory requirements.
According to Reuters, First Abu Dhabi Bank (FAB) is in advanced negotiations to acquire a 61.2% stake in Istanbul-based lender Yapi Kredi from Turkish conglomerate Koc Group. The potential deal, valued at approximately $8 billion, would represent one of Turkey’s largest bank buyouts.
Sources close to the matter, speaking on condition of anonymity due to the confidential nature of the discussions, revealed that the final details are being ironed out following several months of negotiations. The news has had a significant impact on the market, with Yapi Kredi shares soaring by 10% and Koc Holding shares increasing by over 7%, both reaching record highs. This surge helped drive Istanbul’s main index to a new peak, though FAB shares experienced a slight dip.
This potential acquisition marks the latest instance of Gulf investment in Turkey. President Tayyip Erdogan has actively sought to repair relationships with the UAE and Saudi Arabia, aiming to attract their investments to support Turkey’s struggling economy and foreign reserves. One of the sources indicated that Koc had initially sought about $8.5 billion for its shares in Yapi Kredi, while FAB’s offer stood at around $7.5 billion.
In a statement to the Istanbul bourse, Koc Holding acknowledged the Reuters report, confirming that preliminary discussions regarding the sale of Yapi Kredi shares were underway. The company also noted its openness to considering various alternatives within its portfolio. “Although preliminary discussions of a similar nature continue regarding the issue reflected in the media, there are no developments that require public disclosure,” the statement read.
The potential acquisition by First Abu Dhabi Bank underscores the growing economic ties between Turkey and Gulf nations, as both regions look to bolster their economic positions through strategic investments and partnerships.
First Abu Dhabi Bank offers personal and private banking services, ranging from credit cards to Islamic banking, investment, loans, and mortgages in the UAE.
