According to insiders familiar with the matter, First Abu Dhabi Bank (FAB) is currently engaged in advanced discussions to purchase a majority stake of 61.2% in Yapi Kredi, an Istanbul-based financial institution owned by Turkish conglomerate Koc Group.
This potential acquisition which represents a major strategic move for First Abu Dhabi Bank, is valued at about $8 billion. Anonymous sources have revealed that Koc Group sought $8.5 billion for its shares in Yapi Kredi. First Abu Dhabi Bank offered $7.5 billion. Both FAB and Koc Group have remained tight-lipped about the situation.
This potential acquisition comes as no surprise. UAE banks have shown increasing interest in Turkish assets following Turkish President Recep Tayyip Erdogan’s visits to Gulf countries. In fact, the UAE pledged over $50 billion to support Turkey. This marked a significant shift in the political landscape between the two nations. It is worth noting that Dubai Islamic Bank, the largest Sharia-compliant bank in the UAE, made headlines in September 2023 when it acquired a notable 20% stake in Turkey’s TOM Group of Companies.
First Abu Dhabi Bank is not alone in this endeavor. Other UAE lenders are also expressing interest in Turkish banks and businesses. As Turkey’s $1.1 trillion economy continues to thrive, this move could prove to be a game changer for FAB, as it aims to expand its global presence. Furthermore, it could signify a new era of financial collaboration between the UAE and Turkey. It seems that First Abu Dhabi Bank’s ambitious growth strategy knows no bounds.
