Dubai’s biggest bank entered into a revised deal to buy Turkey’s Denizbank AS after the lira slumped and economic growth stalled in the Middle East’s biggest economy.
Emirates NBD PJSC will pay 15.48 billion lira ($2.75 billion) for Sberbank PJSC’s wholly-owned Turkish unit, the state-controlled lender said in a statement on Wednesday. That compares with 14.6 billion lira, or $3.2 billion, it agreed to pay for Denizbank on May 22.
The United Arab Emirates’ second-biggest bank is taking the reins at Istanbul-based Denizbank as President Recep Tayyip Erdogan leans on lenders to lower interest rates and reverse a decline in credit to pull the Middle East’s biggest economy out of its first recession in a decade. It also comes as financial institutions face a rising pile of bad debts and restructuring demands from companies struggling to repay loans denominated in foreign currencies.