Emirates NBD PJSC is in preliminary talks to acquire HSBC Holdings' Turkey business, people familiar with the matter said. The potential deal would mark the Dubai-based lender's second major Turkish acquisition after buying Denizbank from Sberbank in 2019.
Emirates NBD PJSC is in preliminary talks to acquire HSBC Holdings' Turkey business, people familiar with the matter said, in what would be the Dubai-based lender's second major Turkish acquisition after buying Denizbank for about $3.2 billion in 2019.
"HSBC does not comment on market rumors," a spokesperson for the London-based bank said. Emirates NBD didn't immediately respond to a request for comment.
HSBC has been scaling back its Turkish operations under Chief Executive Officer Georges Elhedery, who has been refocusing the lender on core markets in Asia and the Middle East. The bank was once one of the largest foreign lenders in Turkey but has pared back its local presence as part of a broader restructuring that has also seen exits from France, Greece and Canada.
For Emirates NBD, adding HSBC's Turkey business would deepen its footprint in a country of about 85 million people, building on the Denizbank network that gave it a major retail and corporate banking presence. The talks are at an early stage and may not result in a transaction, the people said, asking not to be identified discussing confidential information. The potential deal's value and structure couldn't be learned.
Emirates NBD, majority-owned by the Investment Corporation of Dubai, has been seeking to expand in Turkey where it sees growth opportunities despite the country's economic challenges. The 2019 Denizbank acquisition from Russia's Sberbank was one of the largest cross-border banking deals in Turkish history.
HSBC's retreat from Turkey mirrors a broader pullback by global banks that have reduced their presence in the country because of currency volatility and regulatory uncertainty. Elhedery, who took the helm in 2024, has been streamlining HSBC's operations to improve returns, targeting cost savings of $1.5 billion by 2026.
This article is for informational purposes only and does not constitute investment advice.
