On June 3, 2010, the Colakoglu Group and BNP Paribas entered into a memorandum of understanding (the “MoU”) regarding the merger of Türk Ekonomi Bankasý A.Þ. (“TEB”) and Fortis Bank A.Þ. Under the MoU, which is subject to regulatory authorities’* approval, it has been agreed that the two banks will be merged under TEB.
Upon approval from the regulatory authorities, and after share transfers between the main shareholders following the merger, it is expected that TEB Mali Yatýrýmlar A.Þ (‘‘TEB Mali”) shall remain the majority shareholder in the merged bank and that the Colakoglu Group and the BNP Paribas Group will each continue to hold 50% of TEB Mali.
The proposed transactions are subject to approvals from various regulatory and corporate bodies and the execution of definitive contracts. Until these approvals are met, technical details of the transactions can not be disclosed. The merger is expected to be concluded by the beginning of 2011.
Based on current figures, the newly merged entity will be the 9th largest bank in Turkey by total assets, with 630 branches, 10 500 employees, 3 million individual clients and 500 000 small business or corporate clients. It will be focussed on serving the projects of Turkish individuals and the development of Turkish companies on their home market and all over the world. All its clients will continue to benefit from the solidity and the global reach of the BNP Paribas group, one of the few international banks that has remained profitable every year through the financial crisis, and has the largest deposit base in continental Europe and is a major player in corporate and investment banking.
*Banking Regulatory and Supervision Agency notably
About BNP Paribas
BNP Paribas (www.bnpparibas.com) is one of the six strongest banks in the world according to Standard & Poor’s* and the largest bank in the eurozone by deposits. With a presence in more than 80 countries and more than 200,000 employees, including 160,000 in Europe, BNP Paribas is a leading European provider of financial services on a worldwide scale. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Retail Banking, the Group has four domestic markets: Belgium, France, Italy and Luxembourg. BNP Paribas is rolling out its integrated model across the Europe-Mediterranean zone and boasts a large network in the United States. BNP Paribas Personal Finance is the leader in consumer lending in Europe. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe and solid and fast-growing businesses in Asia.
*Within its peer group