- General
- October 16, 2020
- 4 minutes read
Yandex Axes Tinkoff Bank Deal
Oleg Tinkov, Founder and Chairman, Tinkoff Bank. Photo credit: Tinkoff Bank Russian internet giant Yandex has terminated its pursuit of…
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| Oleg Tinkov, Founder and Chairman, Tinkoff Bank.
Photo credit: Tinkoff Bank
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Russian internet giant Yandex has terminated its pursuit of a $5.5 billion acquisition of Tinkoff Bank, a leading Russian online bank, after having announced its plans to do that just a few weeks ago. In a press statement, Yandex said that it wasn’t able to reach definitive transaction terms with Tinkoff’s shareholders and is calling off the planned acquisition as a result.
Yandex has apparently called off what would have marked one of the biggest deals from the Russian technology industry. Such acquisition would have brought Tinkoff Bank, a leading digital bank with over 10 million customers, under the crosshairs of Yandex, which is itself a tech giant with businesses spanning search engines, fintech, ride-hailing, and food delivery among others.
Tinkoff Bank is an online-only bank with no physical branch that’s known to be second-largest issuer of credit cards in Russia. The publicly-traded bank was founded in 2006 by Russian businessman Oleg Tinkov.
Yandex’s proposed $5.5 billion purchase offer represented an 8% premium to Tinkoff’s market capitalization as of the time the deal was announced. Now with the deal called off, Tinkoff will remain a publicly-traded independent company based out of the Russian capital of Moscow.
