Deals
Dubai Lender May Save Up to $700 Million in Turkey Deal on Lira
- Emirates NBD shares climb to the highest since 2008 in Dubai
- Dubai bank renegotiats transaction amid slumping currency
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Dubai’s biggest bank may save as much as $700 million in a deal to buy Turkey’s Denizbank AS after the lira slumped and economic growth stalled since the agreement was announced 10 months ago.
Emirates NBD will pay 15.48 billion lira ($2.75 billion) for Sberbank PJSC’s wholly-owned Turkish unit, according to a statement. That compares with $3.45 billion if accrued interest, as required under the initial agreement, was added to the transaction, implying a potential saving of about $700 million, said Jaap Meijer, the head of research at Arqaam Capital Ltd.