Industrial & Commercial Bank of China (ICBC), China’s largest bank by assets, has offered £316m for a 75.5% stake in Turkey’s Tekstilbank.
ICBC will buy the shares from GSD Holding; a Turkish firm involved in financial services and shipping, who hired Merrill Lynch to advise them during the sale.
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The deal valued the bank’s shares at TRY 2.11 each (approximately $1) and ICBC announced in a statement it intended to buy the remaining shares of the bank later this year.
According to ICBC, China is Turkey’s third largest trading partner with bilateral trade between the two countries totalling $28bn.
"With the rapidly increasing level of economic co-operation between the two countries, the transaction will enable (us) to better serve clients in both countries," ICBC said in a statement.
Istanbul based Tekstilbank has 44 branches and reported its net income increased 63% to TRY 43.8m ($21m) on an annual basis in 2013.
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By GlobalDataICBC’s purchase of Tekstilbank comes after it agreed to buy a 60% stake in Standard Bank’s global markets unit for $765 million earlier in 2014.
The deal still requires approval from GSD Holding’s shareholders, as well as Chinese and Turkish financial regulators.
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