State-Owned Ziraat Bank Drops Application to Buy Bakery Chain After Erdoğan's Remarks

*Simit is a sesame-encrusted bread, also known as "Turkish bagel" in the US. (Photo: Wikimedia Commons)

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Ziraat Bank has withdrawn its application to the Competition Board to buy 51 percent share of the "Simit Sarayı," a Turkey-based bakery chain that has over 400 restaurants in more than 20 countries, including the US, European and Middle Eastern countries.

The move came after President and Justice and Development Party (AKP) Chair Recep Tayyip Erdoğan said that he didn't approve the purchase.

"It is not possible for me to approve this. Remember how public banks went bankrupt due to duty losses in the past," he told reporters yesterday (December 18) in Geneva. He added that he called the head of Ziraat Bank as soon as he heard the news and that he told him they considered buying the chain but then gave up on the idea.

Photo: Simit Sarayı

After Erdoğan's remarks, the Competition Board removed the statement about the bank's application to purchase the majority stake of Simit Sarayı.

Ziraat Bank's application came amid claims that Simit Sarayı has a debt of 500 million US dollars. The company refuted the claims in a statement yesterday, saying that its debt is less than a third of the alleged amount.

Simit Sarayı is also supported by the Turquality, a branding program launched by the Ministry of Finance and Treasury. (HA/VK)