Abu Dhabi’s ADQ reportedly plans to acquire Bank Audi’s Turkish unit

ADQ, the smallest of Abu Dhabi’s three sovereign wealth funds, is reportedly exploring the acquisition of the Turkish unit of Lebanon’s Bank Audi as entities based in the GCC seek to expand their growth opportunities abroad.

Sources familiar with the matter told Bloomberg that the $249bn fund ADQ has been in discussions to acquire Odeabank over the past few months. Deliberations between ADQ and Bank Audi are reportedly ongoing, and no final decisions have been made. The sources added that there’s no certainty that the fund will ultimately buy the bank.

Odeabank is a midsize lender in Turkiye with assets of $2.6bn (TRL87.3bn). Bank Audi, which established the bank in 2012, is its largest shareholder with a 76.4 per cent stake.

Banks in the GCC region are exhibiting a strong appetite to grow their presence in major regional markets, particularly Turkiye, Egypt, and India, Fitch Ratings said in July while citing improved economic conditions and growth opportunities in target markets.

GCC banks’ main exposure outside the region is through subsidiaries in Turkiye and Egypt, which held around $150bn in assets in the first quarter of 2024.

Meanwhile, UAE’s First Abu Dhabi Bank (FAB) was linked with a possible acquisition of Turkish conglomerate Koc Group’s 61.2 per cent stake in Istanbul-based lender Yapi Ve Kredi Bankasi (Yapi Kredi) in May.

However, a deal between FAB and Yapi Kredi was hampered by disagreements over price.

Dubai Islamic Bank, the UAE’s biggest Shariah-compliant lender by assets, acquired a 20 per cent stake in Turkey’s TOM Group of Companies in September 2023.

Similarly, Dubai’s largest bank, Emirates NBD, acquired 99.85 per cent of Denizbank’s shares for $2.76bn in 2019.

Read: GCC banks show robust interest in global expansion, Fitch says