Burgan Bank receives approval from Turkey’s Banking Regulation and Supervision Agency on its acquisition plan of Eurobank Tekfen – Turkey

Press release

Published December 9th, 2012 - 05:36 GMT

Al Bawaba

Burgan Bank, one of Kuwait’s leading banks with a regional presence in Jordan, Iraq, Algeria and Tunisia, announced today that it has received the approval from Turkey’s Banking Regulation and Supervision Agency (BRSA) on its deal to acquire Eurobank Tekfen in Turkey from Eurobank EFG. The announcement follows Kuwait Central Bank’s approval on the transaction in October this year.

Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank said: “We thank both the Central Bank of Kuwait and the BRSA for their continuous support throughout the process, and we are looking forward to a more fruitful start in Turkey. With this acquisition, Burgan Bank will gain access to the attractive Turkish banking market through an established franchise offering holistic banking services to Corporate, SME, Private banking and Retail clients. Our presence in Turkey will further enhance and support Burgan Bank’s regional expansion strategy.”

“We look forward to receive the Turkish Capital Markets Board approval and close the transaction soon,” added Al-Ajeel.

Earlier in 2012 (April), Burgan Bank announced that it has entered into a Share purchase agreement (SPA) with Eurobank EFG to acquire a 99.26% stake in Eurobank Tekfen. Eurobank Tekfen was established in 1989 and enjoys an extensive geographic coverage within Turkey through its network of 60 branches.

Background Information

Burgan Bank

Established in 1977, Burgan Bank is the youngest conventional Bank and second largest by assets in Kuwait, with a significant focus on the corporate and financial institutions sectors, as well as having a growing retail, and private bank customer base. Burgan Bank has majority owned subsidiaries in the MENAT region supported by one of the largest regional branch networks. which include Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq & Lebanon),Tunis International Bank – TIB (Tunisia), and fully owned Burgan Bank – Turkey, (collectively known as the “Burgan Bank Group”). Furthermore, Burgan Bank has a present in the UAE through its corporate office (“Burgan Financial Services Limited) which had helped the bank to participate in multiple financing opportunities in the UAE.