Azerbaijan, Baku, May 7 / corr Trend I.Khalilova /
Office of German Dresdner bank announced cancellation of its activities in Azerbaijan, according to the announcement published in a publication of the Taxes Ministry.
Office of Dresdner bank has been registered at the Justice Ministry of Azerbaijan on Nov. 20, 1998.
The German bank has been canceled on April 3. On April 15 Dresdner Bankhas announced its cancellation in Ukraine. Dresdner Bank AG office in Kiev is cancelled in accordance with the decision of the Dresdner Bank AG (Frankfurt am Main) board.
The German bank's office is cancelled because Dresdner Bank was purchased by Commerzbank. Commerzbank acquired Dresdner Bank at 9.8 billion euro. The deal will be complete fully by the end of 2009. Office of Commerzbank functions in Azerbaijan.
After the deal Commerzbank will become the second German bank following Deutsche Bank. Dresdner Bank will be absorbed in two stages. In the first stage Allianz insurer, which holds investbank, will acquire Commertzbank's shares at 60.2 of Dresdner Bank shares and additional 2.5 billion euro at money. The shares comprise 18.5 percent of Commerzbank's increased capital and are estimated to 3.4 billion euro. Furthermore, Cominvest, which manages the company's assets estimated at 0.7 million euro will move to the insurance giant.
In the second stage, which is to end by the end of 2009, Dresdner Bank will join Commerzbank, and Allianz will receive more shares of Commerzbank in the amount of 3.2 billion euro.
As a result an insurer with a share of 30 percent will become a big shareholder of joint-stock bank.
Presently, offices of Commerz Bank, Latvian Parex Bank and US Citibank functions in Azerbaijan. The latter opened its representation through the Turkish representation on the basis of a license issued by the Central Bank on Feb. 18, 2008.
The foreign banks display much interest to enter Azerbaijan's fiscal market. Before deepening of global financial crisis Societe General of France, VneshtorgBank of Russia, and TBC Bank of Georgia stated on their will to obtain a stake in local banks.
VneshtorgBank has acquired a control packet in a local AF Bank and TBC Bank concluded a deal to purchase 75 percent of shares in a non-bank credit organization SOA Credit (now TBC Credit)
At present Azerbaijan has 46 banks, including 21 functioning with foreign capital.
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