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Denizbank plans to acquire Citi’s Turkish consumer banking business

Turkey-based Denizbank is engaged in discussions with Citi to purchase its consumer banking business, in a bid to further strengthen its banking operations in the country.

Confirming the matter in a statement to the Istanbul Stock Exchange, the Turkish bank declined to disclose further terms of the deal, as reported by media sources.

Denizbank was acquired by Russian lender Sberbank from Dexia in Belgium last year.

Citi launched its Turkish consumer banking business in 1996 and started offering commercial banking services in 1998.

Following the disposal of consumer banking unit, the US bank will continue its commercial and corporate-banking services in the country.

It is expected that both companies will ink an exclusivity agreement, and the final also might be signed within a month.

The US bank had initially shortlisted four firms including diGaranti, Fibabanka, Denizbank and Odeabank for further discussion on the proposed deal.

Citi is offloading its operations as part of its strategy to focus on domestic market and boost profitability.

As part of its cost cutting program, the US lender announced in December 2012 that it is planning to dispose of or wind down its operations in Turkey, Pakistan, Romania, Uruguay and Paraguay.