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Published on : May 26, 2015

Turkish GSD Holding’s 75.5% stake in Tekstilbank has been acquired by Industrial and Commercial Bank of China Ltd (ICBC). Tekstilbank offers its services mainly to the small and medium firms and through its subsidiary arm Tekstil Securities, offers securities brokerage. The deal marks the Chinese bank’s first business operation in Turkey.

According to the chairman of ICBC, Jiang Jianqing, the acquisition will lead to financial cooperation between the two countries as well as help in local economic development. The official inauguration ceremony was held in Ciragan Palace and was attended by Ali Babacan, the Deputy Prime Minister of Turkey. Jiang stressed that the bank will provide its services to the major Turkish enterprises. He also mentioned that this is a stepping stone for the bank to foray into the Turkish market. ICBC is the leading player of the global banking industry with its presence in 42 countries through 400 overseas financial institutions.  

Adhering to the regulatory requirements in Turkey, ICBC will propose a tender regarding the remaining shares of Tekstilbank that are held by public shareholders. According to a statement issued by the bank, Turkey’s position as a founding member of the Asian Infrastructure Investment Bank and the establishment of Silk Road Economic Belt will lead the two countries in assisting each other to develop infrastructure projects. The two nations are already cooperating in various sectors such as electricity, high-speed railway, satellites, and aerospace. China is the third largest trading partner of Turkey and the second largest nation in terms of imports. The governments of both the countries are positive about the bilateral trade balance to exceed US$100 billion by the end of 2020.