As known, at the beginning of each year, Competition Authority publishes annual mergers and acquisitions overview report pertaining to the previous year.

Being an important data set that guides investors’ decisions with respect to the course of the investment climate, this report contains data about mergers, acquisitions and privatizations examined by the Competition Authority in the previous year.

“2017 Mergers and Acquisitions Overview Report” prepared within the framework of mergers and acquisitions notified to the Competition Authority in 2017 was announced to public during the press conference on January 5, 2018.

In the conference, the President of the Competition Authority Prof. Ömer TORLAK, extended his thanks to the personnel of Economic Analyses and Research Department for their efforts and gave information about the report.

Outstanding headlines from President TORLAK’s speech is as follows:

- In 2017, totally, 184 merger and acquisition transactions were notified to the Competition Authority.

- In 90 of those, the target company or the joint venture in question were companies established according to the laws in Turkey.

- Moreover, five privatizations were evaluated in 2017. Privatizations in Turkey were mostly related to the generation, transmission and distribution of electric power in 2017.

- As known, transaction volume, in other words transaction cost is one of the indicators of economic reliability and investors’ expectations.   Except for privatizations, in transactions where the origin of the target company or planned joint venture is Turkey total transaction cost is 22 billion and 310 million TL.

- In 2017, foreign investors made investments amounting to 15,1 billion TL to Turkish companies in 47 different transactions. The share of foreign investors in transactions where the origin of the target company is Turkey is 68%.

- As seen from 2017 Mergers and Acquisitions Overview Report, foreign investors continue to be interested in Turkish economy.  This fact is important, as it is one of the indicators of the reliance on Turkey’s economy.

 - Investors from Holland and Japan are on the first place in the ranking made based on transactions, followed by French and Luxembourg. With regard to transaction volume, investors from Holland and Jersey/Channel Islands rank in the first two places.

- When we focus on all transactions within the borders of Turkey, regardless of origin, transactions were realized in the area of electricity generation, transmission and distribution at most with regard to the number of transactions.

- Taking into account transaction volume, “wholesale and retail trade” is the area where the highest transaction volume was observed in the classification made in relation to major activity fields. Under this heading, transactions in “fuel distribution” and “organized retail” sectors are leading.  “Electricity generation and distribution” are on the second rank with respect to transaction volume. The transactions within this scope were mostly realized in “electricity generation” sector and electricity distribution” sector. The third major activity field where the transaction cost is the highest is “manufacturing”, and “plastic products”, “food” and “automobile spare parts” are outstanding sectors within the scope of this activity field.

- In 2017, mergers are acquisitions notified to the Competition Authority were concluded approximately 15 days after the deadline for notification.

- Within the framework of article 10 of the Act no. 4054, the Competition Board decided to deal with four transactions under final examination because an in-depth examination was needed about their effects on the competitive structure of the market. One of those transactions was not authorized due to the risks found as a result of the final examination while the examinations about the other three transactions are not concluded yet. During the same period, two transactions were conditionally approved within the context of the commitments made.

Click here for the Report (in Turkish)