Burgan Bank, one of Kuwait’s leading banks with a regional presence in Jordan, Iraq, Algeria and Tunisia, said it has won approval from the Central Bank of Kuwait for its deal to acquire Turkey-based Eurobank Tekfen.

A subsidiary of EFG Eurobank, Eurobank Tekfen, was established in 1989 and enjoys an extensive geographic coverage within Turkey through its network of 60 branches.

Early this year in April, Burgan Bank had announced that it had entered into a share purchase agreement (SPA) with Eurobank EFG to acquire a 99.26 per cent stake in Eurobank Tekfen.

The bank said it is still awaiting final approval from Turkey’s regulators to complete the deal.
 
Commenting on the deal, chairman Majed Essa Al Ajeel said: “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," he stated.

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,” remarked 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,” Al-Ajeel added.-TradeArabia News Service