Merrill Lynch has become the latest bank to muscle into Turkey by buying local banking group Tatbank, just four months after bringing in a head of Turkish global markets and investment banking as part of its push into the region.

Merrill said yesterday it has agreed to buy Tat Yatirim Bankasi, known as Tatbank, for an undisclosed price. The purchase, which includes Tatbank's wholly-owned brokerage business, gives the US bank a licence to offer investment banking services in Turkey.