National Bank gets foothold in Turkey
National Bank of Greece (NBG), the country’s largest lender, announced yesterday that it will buy a 46 percent stake in Turkey’s Finansbank for 2.3 billion euros in the biggest-ever financial deal between the two countries. NBG, which has a market value of about 13 billion euros, said it will make a public offer to buy the stake in Turkey’s fifth-largest lender. Apart from helping create value for shareholders, the deal is expected to have a wider economic and political impact in the region. NBG Chairman Takis Arapoglou said yesterday that the political ramifications of the acquisition had been taken into account. «Both the economic and political risks were taken into consideration to reach a decision, but it was decided it was worth making an investment,» he said. NBG, like other Greek banks, has been expanding in Southeastern Europe in the last few years as a way of gaining access to fast-growing markets. Sources have said that NBG had been poised to enter the market in the neighboring country but that the company was waiting for the right political environment. NBG shares are listed on the Athens Stock Exchange but the government retains control of the company through state-owned pension funds. The deal is also seen as paving the way for other Greek firms to start operations in Turkey, which has a market of about 68 million people.
