Spanish BBVA now leading shareholder in Turkey’s Garanti Bank

ISTANBUL

CİHAN photo

Spanish lender BBVA has become the leading shareholder in Garanti, Turkey’s largest bank in terms of market capitalization, the companies said on July 27 in a joint press conference. 

After completing the transaction announced last November to acquire an additional 14.89 percent holding, the BBVA Group now owns to 39.9 percent of Garanti.

BBVA chairman Francisco Gonzlez was in Istanbul for the closing of the transaction and the appointment of the new Garanti CEO.

“This is an important day in BBVA’s history. After four years of excellent relations between the partners BBVA has become the leading shareholder in Garanti, Turkey’s best bank,” said Gonzlez, at a joint press conference to announce the closing transaction and reshuffling of top management. 

“During our collaboration, we have closely witnessed the enthusiasm of a world banking giant like BBVA for Garanti, as well as its trust in our values, our corporate culture and our team, who is passionately committed to its work,” said Ferit Sahenk, chairman of Garanti and the Doğuş Group, which will retain the chairmanship of Garanti’s board of directors and still own a 10 percent stake in Garanti. 

Fuat Erbil has been appointed as the new CEO, replacing Ergun Özen. The new CEO is one of the seven directors to be appointed by the BBVA in a board of ten members. Özen will continue as board director. The change of chief executive officer will be effective from September.

Garanti is the top bank in Turkey by market capitalization (11.1 billion euros) with about $100.9 billion in assets at the end of March, according to the joint statement. With consolidated data, it serves more than 13 million customers through an extensive retail network of more than 1,100 branches and over 4,400 ATMs.