DenizBank has inked an agreement with Citibank to acquire its consumer banking business in Turkey, which is subject to customary regulatory approvals.
Based on the agreement, DenizBank will purchase a portfolio consisting of over 600,000 customers, more than TL1.2bn ($650m) in gross assets, over TL1.5bn in deposits ($800m), as of 31 December 2012.
The acquirer will also take over Citi’s consumer banking employees and consumer branches in the country, as part of the transaction that is likely to conclude during the third quarter of 2013.
DenizBank CEO Hakan Ates said the acquisition of all retail banking activities of Citi Turkey will assist the bank to grow its business in the country.
"Upon completion of the process we initiate today, we will have nearly 1,500 new employees. After successful balance sheet figures obtained in 2012, we now have the excitement and pride of acquiring Citibank Turkey’s retail banking business line," Ates added.
Following completion of the transaction, the US bank will continue to develop its business operations for corporations, financial institutions and commercial banking clients in Turkey.
Citi’s Institutional Clients Group served Citi on this transaction, while DenizBank was advised by Deniz Investment.
Operating in Turkey since 1975, Citi serves corporate and commercial clients in the country, including medium and large corporations, financial institutions, public entities, and subsidiaries of foreign multinational companies.