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Insight
Merger and acquisition
activity in Turkey’s
financial sector
January 2014
Financial sector insight
With its significant contribution to the Gross Domestic Product (“GDP”) via robust
growth rates, Financial Services (“FS”) sector continued to attract the attention of
investors. In addition to Mergers and Acquisitions (“M&A”) activity, we witnessed
eye-catching new market entrances to the financial sector which are expected to
continue in the coming period.
Total announced value of M&A in Turkish Financial Sector in 2013 is realized as
€ 1.3 billion, referring to a 63% drop on 2012’s equivalent figure of € 3.4 billion.
The fall in deal value is mostly due to the lack of large or medium cap banking
deals in 2013 compared to the prior year which witnessed a large banking deal,
Denizbank, corresponding to c.88% of the total disclosed transaction value in 2012.
FS M&A deals
30
7,000
Number of Deals
5,946
6,000
25
25
5,000
20
19
4,000
3,397
15
14
3,000
2,000
12
8
10
1,262
5
638
1,000
Deal Value (€mn)
89
-
FY09
FY10
Banking
The biggest banking deal of 2013
was the acquisition of 70.84% share
in Alternatifbank (from Anadolu
Endüstri Holding) by Commercial
Bank of Qatar for € 360 million.
Besides the continued foreign interest
in the sector, Turkish investors also
demonstrated an appetite in buying
foreign owned banks within the
country. For instance, Fibabanka
agreed to acquire Societe Generale’s
consumer finance business KrediVer.
Moreover, Aksoy Holding (who holds
51.6% shares in Turcas) agreed to
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FY11
FY12
FY13
purchase 100% shares in Bahrain
based TAIB Investment Bank.
In 2013, one of the deals in the
banking sector demonstrated the
growth appetite of new entrants to
the industry. Citibank Turkey’s retail
banking business has been acquired
by Denizbank whose stakes have been
bought by Russian Sberbank in 2012.
Leasing
In 2013, the only M&A activity in
the leasing sector was Commercial
Bank of Qatar’s acquisition (through
its subsidiary, Alternatifbank) of
Alternatif Finansal Kiralama (ALease)
from Anadolu Endustri Holding for
approximately € 53 million (1.8x
equity value).
Insurance
Insurance sector was the leader of the
2013 FS M&A League in terms of deal
value. Four out of twelve deals in FS
industry were related to the insurance
sector, where the sector dominated
nearly 70% of M&A activity in value
(according to disclosed figures).
FS Sub-Sector M&A Breakdown
Deal value* per sector - FY13
4.1%
0.5%
Deal value* per sector - FY12
0.6%
0.8%
Insurance & Reassurance &
Pensions
27.6%
€360m
€874m
2.7%
0.3%
Banking
Banking
Insurance & Reassurance &
Pensions
Leasing
Financial Intermediary
Factoring
€3,257m
Others
Others
67.1%
96.4%
*Announced transactions
2013’s largest insurance transaction
involved a bidder from Europe.
Allianz SE bought 94% stake in Yapı
Kredi Sigorta (non-life), including
Yapı Kredi Emeklilik (life and
pension) from Yapı Kredi Bank for €
684 million. Allianz SE’s share in Yapı
Kredi Sigorta reached 99.78% after
the mandatory tender offer (following
the acquisition) for the company’s
remaining stake held by minority
shareholders.
New Banking Licenses
As the Banking Regulation and
Supervision Agency (BRSA), the
watchdog of the banking sector
in Turkey, become more likely to
grant new banking licenses to the
financially robust investors (injecting
USD 300 million capital is the
prominent criteria), new entrances
kept going in 2013.
The banking watchdog approved
two international banks to establish
a bank in Turkey, namely Bank
Intesa and Rabobank. Those banks
are currently working on setting
the operational license which is a
prerequisite in order to start their
banking activities. For instance, Bank
of Tokyo Mitsubishi UFJ, who had
received an approval to establish
a bank at the end of 2012, became
operational in the sector after the
BRSA’s approval of the banking
license for the bank. All these banks
declared that they will mostly engage
in wholesale banking in Turkey.
At 31-Dec-13, NASDAQ OMX Group
and Borsa Istanbul A.S. concluded
an agreement, which includes
the delivery of market-leading
technologies and advisory services
to Borsa Istanbul, and NASDAQ OMX
taking 5% stake (with an option of
additional 2%) in Borsa Istanbul. The
parties will work closely together to
strengthen Borsa Istanbul’s position
and brand as the capital markets hub
for the region.
Financial Sector M&A deals in Turkey
Target sector
Target company
Bidder company
Bidder country
Insurance & Reassurance & Pensions
Yapi Kredi Sigorta
Allianz
Germany
Stake
acquired
Deal value
(€ m)
94.0%
684.0
Banking
Alternatifbank
Commercial Bank of Qatar
Qatar
70.8%
360.2
Insurance & Reassurance & Pensions
Acibadem Saglik ve Hayat Sigorta
Avicennia Capital
Malaysia
90.0%
189.5
Leasing
Alternatif Finansal Kiralama
Alternatifbank
Turkey
95.5%
53.0
Factoring
Fortis Faktoring A.S
Teb Faktoring A.S
Turkey
100.0%
6.0
Banking
Societe Generale's Tukish consumer
finance business
Fibabanka
Turkey
100.0%
n.d.
Banking
Taib Yatirim Bank
Aksoy Holding
Turkey
100.0%
n.d.
Banking
Citibank Turkey's retail banking business
Sberbank
Russia
100.0%
n.d.
Insurance & Reassurance & Pensions
Demir Sigorta
Hariri family
UAE and Lebanon
90.0%
n.d.
Others
10.9
Total - FY13
*The deal list covers:
• regulated sectors (Deals within payment systems sector were not taken into account).
• over 5% share transfers
• only acquisitions rather than open market purchases, tender offers etc.
• fully completed deals (not pending ones for BRSA, CMB or Competition Board approval)
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Contacts
Zeynep Uras
Partner
Hüsnü Dinçsoy
Partner
+90 212 326 6062
[email protected]
+90 212 376 5302
[email protected]
Serkan Tarmur
Partner
Aykut Taşel
Director
+90 212 376 5304
[email protected]
+90 212 355 5838
[email protected]
© 2014 PwC Turkey. All rights reserved. In this document, “PwC” refers to PwC Turkey, which is a member firm of PricewaterhouseCoopers International
Limited, each member firm of which is a separate legal entity. “PwC Turkey” refers to Başaran Nas Bağımsız Denetim ve Serbest Muhasebeci Mali
Müşavirlik A.Ş., Başaran Nas Yeminli Mali Müşavirlik A.Ş. and PricewaterhouseCoopers Danışmanlık Hizmetleri Ltd Şti. which are separate legal entities
incorporated in Turkey within the PwC Turkey organisation.
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