China's largest bank acquires Turkish bank

Tuesday, April 29, 2014

China's largest bank by assets, ICBC, says it has agreed to buy majority stake in Tekstilbank

China's largest bank by assets, ICBC, says it has agreed to buy majority stake in Tekstilbank

BEIJING - China's largest bank by assets, Industrial and Commercial Bank of China (ICBC), has said it has agreed to pay 669 million Turkish Liras (US$315.6 million) for a 75.5-percent share in Turkish lender Tekstilbank, which is owned by GSD holding.

The trading of shares of Tekstilbank and GSD Holding were suspended temporarily, after the announcement of the deal on Tuesday.

The deal has been negotiated by both banks for more than a year, but it still needs approval from the Turkish government.

The ICBC had previously bid to purchase another bank in Turkey, Alternatifbank, which was later sold to the Commercial Bank of Qatar (CBQ) for US$460 million.

The Chinese bank´s assets overseas reached US$209.2 billion at the end of 2013, surging 28.5 percent year on year.

The Beijing-based lender's 2013 net profit rose by 10.2 per cent reaching 263 billion yuan (US$42.42 billion).

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