M&A Overview Report 2016 (Report), available at the webpage of the Turkish Competition Authority as of April 12 April 2017, provides brief information on the Turkish merger control system and makes comparison between 2015 and 2016, as well as Turkish and foreign investments. The aim of the Report is provide an overview of the merger control regime in Turkey and determine the place of Turkish companies in the market. Foreign investors continue to be interested in the Turkish market, considering the increase in the value (as well as the number, although less significantly) of Turkish-to-foreign transactions, and foreign investment in Turkish companies in 2016.
Some M&A statistics under the Report
Number of M&A. The number of the M&A transactions notified to the TCA in 2016 increased when comparing with 2015. In 2016, a total of 209 M&A transactions were notified to the TCA, while in 2015 the TCA received 159 notifications.
Origin of M&A parties. According to the categorization in terms of the origin of the transaction parties 34 transactions were realized solely between the Turkish companies in 2016, while in 2015 those constituted 29. Furthermore, 107 out of 209 transactions were foreign-to-foreign transactions in 2016, which is almost a double number compared to year 2015 where foreign-to-foreign transactions amounted to 64. Finally, 50 transactions were between Turkish and foreign companies in 2016 (with 48 respective transactions in 2015). It is worth emphasizing that the value of Turkish-to-foreign transactions increased from TRY 6 billion (€ 1.5 billion) in 2015 to TRY 10 billion (€ 2.5 billion) in 2016.
Foreign investment. In 2016, foreign investors invested in Turkish companies in 47 different transactions (45 transactions in 2015). According to the ranking of foreign investors in terms of transactions, The Netherlands is leading (with 9 transactions), followed by Germany (6), Japan (4) and UK (4). Number of transactions with the involvement of France, Korea, and Australia increased in 2016 as compared with 2015. In acquisition transactions where Turkish companies were acquired, foreign investment constituted approximately TRY 18 billion 891 million (approx. € 4.816 billion) in 2016, while in 2015 this figure amounted to TRY 6.3 billion (approx. € 1.6 billion).
Market and value. Most M&A were realized in the production, transmission and distribution of electricity markets. The highest transaction value in Turkey in 2016 was realized in the field of the activities of financial intermediary institutions. The transaction value in this area constituted 27.9% of the total value of all transactions in 2016 (excluding privatizations).
Procedure. In the Report, the TCA also indicates that M&A transactions notified to the TCA in 2016 were concluded within an average of 15 days following the date of final notification. The Report provides a clear picture of merger control regime in Turkey and determines the place of Turkish companies in the market. Foreign investors continue to be interested in the Turkish market, considering the increased value (as well as number) of Turkish-to-foreign transactions, and foreign investment in Turkish companies in 2016.
Mustafa Ayna and Ayberk Kurt
