Merger Process Begins for Ziraat Katılım, Vakıf Katılım and Halk Katılım Banks

The process to merge the state-owned participation banks Ziraat Katılım, Vakıf Katılım and Halk Katılım under a single roof has officially begun. TVF Katılım Finans Yatırımları AŞ, a subsidiary of the Turkey Wealth Fund, has acquired all shares of Ziraat Katılım and Halk Katılım.

The first signal of the merger move, planned to increase the market effectiveness of public participation finance institutions and to operate through a common structure, was given by President Recep Tayyip Erdoğan at the 3rd Istanbul World Islamic Economy Summit held on June 5. Erdoğan had stated that a major synergy would emerge and the sector would gain a different momentum by combining the forces of the three participation banks.

TVF Katılım Finans Yatırımları AŞ, a 100 percent subsidiary of the Turkey Wealth Fund, concluded the closing transactions regarding the share purchase agreements of Ziraat Katılım and Halk Katılım following the completion of legal and regulatory processes. With this step, a critical phase in gathering public participation finance institutions under a single roof has been left behind.

With the merger, it is aimed to increase the capacity, competitive power and market share of the institutions, and to continue operations in a more integrated structure. It has not yet been announced under what name the new structure will operate and how the legal and operational calendar will proceed. A similar consolidation model was applied to public insurance companies in 2020, when Ziraat Sigorta, Halk Sigorta and Güneş Sigorta were merged under a single roof with the brand Türkiye Sigorta.