2021 M&A Report has been released by the Turkish Competition Authority

The Turkish Competition Authority (“Competition Authority”) released a Report 2021 on Mergers and Acquisitions (“Report”), on its website on the 7th of January. The report was prepared within the framework of the data on mergers, acquisitions, and privatization transactions decided by the Competition Board in 2021.

The determinations in the Report are as follows:

• The Competition Authority has examined a total of 309 mergers, acquisitions, and privatization transactions, 
• In 118 of these transactions, the target company is the companies established under the laws of the Republic of Turkey.
• The total transaction cost of these reported transactions is approximately 42 billion 568 million TL. In the same period, 7 privatization transactions with a total transaction value of approximately 95 billion TL were examined. Thus, the total transaction value foreseen in 125 transactions for companies of Turkish origin is approximately 137.5 billion TL. Among the mergers and acquisitions in which the target company originated in Turkey: the highest number of transactions was in the field of “generation, transmission and distribution of electrical energy” with 14 transactions; the highest transaction value was reported in the field of “manufacture of packaging materials from plastic” with approximately 3.7 billion TL.
• Among the 7 privatization transactions examined in the same period, the "generation, transmission and distribution of electrical energy" field stood out with 3 in terms of the number of transactions; The highest reported privatization transaction is in the field of “airport management” with approximately 89.3 billion TL.
• Foreign investors invest in companies of Turkish origin in 50 separate mergers and acquisitions. According to the ranking made based on transactions among foreign investors, investors of Luxembourg origin are in the first place with ten transactions. The amount of investment reported to be made by foreign investors in these transactions is approximately 22 billion TL. In one privatization transaction examined in the same period, the parties to the transaction were foreign investors, and the transaction value was reported to be 89.3 billion TL. When privatizations are also included, the total investment amount foreseen for Turkish-origin companies in 51 transactions by foreign investors is approximately 111.3 billion TL.
• 173 mergers and acquisitions transactions carried out by foreigners abroad were also examined. In these transactions, where no direct investment is foreseen in companies of Turkish origin, the total transaction value reported is 5 trillion 654 billion TL.
• When a total of 224 transactions, 51 of which are in Turkey and 173 abroad, are planned to be carried out at the global level by foreign investors, the prominent ones among the sectors in which investments are made are: financial services, manufacture of chemical products, programming and broadcasting activities, machinery and equipment manufacturing, manufacturing of basic pharmaceutical products.

You can reach the full text of the Report in Turkish here.

Kind regards,

Zumbul Attorneys-at-Law

info@zumbul.av.tr