Banco Bilbao Vizcaya Argentaria (BBVA) has announced that it will ultimately acquire the Garanti Bank in Turkey. BBVA has 49.85% of the total shares of the bank at present.
BBVA offered $2.54 billion to buy the remaining shares of the Turkish bank. The offer from Spain's BBVA was made because of the crash of the Turkish Lira in the market. The Turkish Lira has devalued 30% against the US Dollar this year.
After the deal was announced, Garanti shares surged 15%, taking the price of a claim to 12.2 TRY. Still, the agreement is quite strategic for BBVA in many ways. The proposal for 50.15% of Garanti is less than the third of 49.85% when BBVA bought it for $7.9 billion.
BBVA has changed its strategy from matured European areas to Emerging Markets and believes it holds high earning p...
