Spain’s BBVA considers bid for HSBC Turkey, Brazil units

Madrid-based bank BBVA announces interest in bidding for British lender HSBC’s Turkey and Brazil operations

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

Spanish lender BBVA, which has a 40 percent stake in Turkey’s Garanti Bank, is considering making an offer for HSBC's units in Brazil and Turkey, said Vicente Rodero - head of BBVA’s global franchises - according to a report by website CNNExpansion on Wednesday.

"We've looked at HSBC's operations in Turkey and Brazil,” Rodero said at an annual meeting in Mexico City. “They wouldn't be easy deals. We are going to see, and if we get the opportunity we'll go for it," he added.

A BBVA spokesman in Madrid could not confirm Rodero's remarks but said it was the bank’s duty to look at every opportunity when asked if the lender was interested in the businesses.

British bank HSBC will sell its businesses in Brazil and Turkey, as part of a global overhaul involving axing nearly 50,000 jobs, the bank announced on Tuesday.

HSBC is the sixth and 12th largest bank in Brazil and Turkey respectively, and it is estimated the businesses could fetch more than $4 billion for the pair.

BBVA offered $2.5 billion to buy an additional 14.89 percent stake in Turkey’s second largest bank Garanti from Turkish conglomerate Dogus Holding at the end of last year, which would raise its stake in the bank to 40 percent.

“Turkey is a very exciting market where we can achieve strong long-term growth,” BBVA’s chief financial officer Jaime Saénz de Tejada was quoted as saying at the time.

The transaction is still waiting for approval from Spain’s central bank. BBVA had bought 25 percent of Garanti in 2010.

TRTWorld and agencies