ECB warning led ING to drop Turkish bank takeover plans: FD

Photo: Wikimedia Commons
Photo: Wikimedia Commons

ING pulled out of its planned takeover of Turkey’s Demir bank last year after a warning from the European central bank, the Financieele Dagblad said on Wednesday.

The ECB had ‘major concerns’ about large cash transactions between the bank and Iranian nationals which took place before the international boycott was withdrawn, the paper said. After receiving a formal, written warning, ING pulled out of the deal.

The paper bases its claims on people involved in the takeover talks. The paper says this is the first time the ECB has been shown to intervene directly since it began regulating the European banking sector last year.

The planned acquisition would have cost €750m and is therefore not a large deal, the paper said. It would, however, have strengthened ING’s position in the Turkish market and shown that the bank is back in business after paying off its state support.

Neither ING nor the ECB would comment on the report, the paper said.

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