Demir Factoring, the largest of Turkey’s 95 factors with 8.9% market share in 1999, is facing an uncertain future.
Whilst it has been confirmed that the UK-based global bank, HSBC, will make an investment of $350m after signing an agreement to acquire the failed Demirbank, details of the precise nature of the deal and its implications regarding Demirbank’s subsidiaries are not yet finalised.
Demirbank, which was previously Turkey’s fifth largest private-sector bank, was seized by Turkey’s Banking Regulation and Supervisory Agency last year after it failed under its previous private owners.
Selected assets and liabilities accounting for a third of Demirbank’s balance sheet are to be merged by year-end with HSBC’s existing Turkish operations. HSBC’s press office have said that details are unlikely to be formalised until the end of October.
BCR Publishing, Financial Times
