Reuters - Spanish bank BBVA has bought joint control of Turkey's Garanti Bank in a USD 5.8 billion deal, cutting exposure to a stagnant home market to enter one of the world's fastest growing economies.
BBVA will buy a 24.9 percent stake in Garanti with funding from a EUR 5.1 billion rights issue, giving it joint control with Garanti parent, the Dogus Group. Until now, the bulk of BBVA's overseas business was in Latin America and the United States. "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," said BBVA Chairman Francisco Gonzalez in a statement.
BBVA paid TRY 8 per share for the stake, a 10 percent discount to last week's average price, but shares in Garanti, viewed as one of Turkey's best-run banks, have risen by over a third since the start of the year.