Abu Dhabi's sovereign Wealth Fund ADQ has entered into an agreement to acquire Turkish bank Odeabank as part of the UAE's expansion into Turkey. This is reported in the press release of ADQ.
As part of the deal, ADQ will buy 96% of the shares of Odeabank, owned by Lebanese bank Audi SAL, from Bank Audi and other investors, including International Finance Corp. and the European Bank for Reconstruction and Development.
ADQ has been negotiating the acquisition of Odeabank for several months amid improved political relations and sustainable economic growth prospects, as well as the Turkish government's desire to attract investment.
Turkey is interested in attracting foreign direct investment and strengthening economic and commercial ties with the UAE. The acquisition of Odeabank by the ADQ fund may increase competition in the Turkish banking sector amid an increase in foreign capital inflows. In addition, the introduction of new technologies and business models by ADQ can contribute to the development of the sector.
During the visit of Turkish President Recep Tayyip Erdogan, the UAE government promised to invest more than $50 billion in the Turkish economy. Other Middle Eastern companies, including First Abu Dhabi Bank PJSC, are also considering investments in Turkey.
Odeabank is a medium—sized Turkish bank with assets worth 87.3 billion lira ($2.6 billion), founded in 2012 by Bank Audi, which is the majority shareholder with a 76.4% stake. Odeabank is a prominent player in the Turkish banking sector serving individuals and small and medium-sized business customers.
ADQ acts as an investor focused on accelerating economic transformation in Abu Dhabi. The Fund invests in the energy and utilities sector, the food industry and agriculture, healthcare, transport and logistics. The headquarters is located in Abu Dhabi (UAE).
Read also in our Telegram channel "Mergers and acquisitions. AK&M».
