Turkish lender Denizbank, owned by Franco-Belgian banking group Dexia, will sell DenizEmeklilik to MetLife, the largest US life insurer, for 162 million euros ($229.3 million).
 
The sale, part of a deal Dexia struck with the European Commission in return for state aid during the 2009 global financial crisis, was expected to close by the end of 2011, the two companies said on Monday. MetLife, through its Turkish business, will buy Dexia's 99.86 percent stake in DenizEmeklilik, the life insurance and pension subsidiary of Denizbank in Turkey.

Dexia's Denizbank will exclusively sell MetLife's pension and insurance products through its branches for the next 15 years. MetLife said the deal would add significantly to its business in Turkey, a key growth market. The US company last year bought global life insurer Alico from American International Group for $16.2 billion to double the contribution of non-US operations to the group's earnings. Dexia said the DenizEmeklilik transaction would generate a post-tax capital gain of about 119 million euros.

In a written statement to the press on Monday, Denizbank General Manager Hakan Ateş underlined that both institutions would make money from the deal. “The success of our distinct and differentiated business solutions for our customers and strong capital structure has attracted the attention of MetLife. I am pretty sure that this deal will benefit both Denizbank and MetLife,” he said.

MetLife MEASA CEO Michel Khalaf noted that Turkey is a strategic market for the company's future operations and underscored that a strong and long-lasting partnership was crucial for the American company. “We are very impressed by DenizEmeklilik's dynamism and success. I believe that DenizEmeklilik and MetLife will unite their expertise and form stronger growth in the near future,” he stated.