The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Turkey: Spain’s BBVA takes a Turkish cure

Spanish lender looks for growth abroad; Other Turkish lenders expand their horizons

Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) is looking to pep up its weak growth prospects at home with a move into the fast-growing Turkish banking market.

Earlier this month, it agreed to buy a 24.9% stake in Garanti Bank, Turkey’s number two bank, for €4.2 billion and then announced it would launch a €5 billion rights issue to pay for the deal. BBVA is acquiring an 18.6% stake from cash-strapped General Electric, which will retain a minority shareholding in Garanti, and 6.3% from Turkey’s Dogus Group.

The latter move means that Garanti and Dogus, which was Garanti’s biggest shareholder, now have identical stakes in the bank. They will jointly manage Garanti. Both BBVA and Dogus will appoint four directors to the board. After five years, however, BBVA will be able to appoint two-thirds of the board thus getting around the thorny issue of control for the Spanish bank.

Best potential

"BBVA wants to be in markets with the best potential for growth and Turkey, through a leader bank like Garanti, is undoubtedly one of those," says Francisco Gonzalez, BBVA’s chairman.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree