Dubai – Mubasher: Emirates NBD may save as much as $1 billion in its deal to acquire Turkey’s Denizbank due to the decline in the European country’s currency.
The deal’s value, which has stood at $3.2 billion on 22 May, may reach $2.27 billion after a 28% plunge in the Turkish Lira, according to Bloomberg News.
Following a spat between Ankara and Washington, the US government has imposed sanctions against Turkey, which had a devastating effect on the Lira and the banking sector.
“The deal has value for Emirates NBD because of the growth opportunities and diversification benefit, but they are entering at the wrong time, which might require a higher capital injection into Denizbank,” Bloomberg Intelligence analyst Edmond Christou said.
Emirates NBD, Dubai's largest bank, stated earlier that it is “closely monitoring” the economic situation in Turkey.
In May, Emirates NBD signed an agreement to acquire the 99.85% stake of Sberbank in Denizbank.
