The Turkish Competition Authority has published the general outlook report for 2022 within the framework of the data on mergers, acquisition and privatization transactions. In this article, we examined the report of the Competition Authority [1].
As stated in Article 20 of Law No. 4054 on the Protection of Competition, the Competition Authority is responsible for "ensuring the formation and development of goods and services markets in a free and healthy competitive environment, overseeing the implementation of the Law [No. 4054] and fulfilling the duties assigned to it by the Law. It was established as an institution with a public legal personality and administrative and financial autonomy".
Introduction
Looking at all transactions, this Report was prepared by examining a total of 245 mergers and acquisitions transactions by the Competition Authority in 2022. In the report, it is stated that 310 mergers and acquisitions transactions were resolved in 2021. In the report, the Competition Authority stated that it defines "all the transactions notified to the Competition Authority without any restriction on the laws of the country in which the transaction parties, the target company or the joint venture subject to the transaction were established". Therefore, it should be noted that transactions involving foreign companies are also examined in the Report.
According to the data in the report, 145 of 245 transactions were realized in Turkey and in 39 of these transactions all of the parties were Turkish-origin companies and 154 of them all consisted of companies established according to the laws of foreign countries. In 34 transactions, at least one of the parties consists of Turkish-origin and foreign companies.
On the other hand, 7 privatization transactions were carried out in 2022 and according to the Competition Authority data, the transaction volume of only 4 privatization transactions was 13,978,493.112,00 TL. There is no transaction cost information regarding the other 3 privatization transactions.
Mergers & Acquisitions
According to the merger and acquisition transaction values reported in Turkey transactions, the transaction values in 2022 were calculated as 72.2 billion TL, while this value was 42.6 billion TL in 2021. Although it is stated in the Competition Authority's Report that the transaction volume for 2022 is above the average of the last ten years with a value of 72.2 billion TL, this value has increased by approximately 70% compared to the previous year, during the evaluation of these data, the CPI, which is 64.27% according to the Turkish Statistical Institute (TUIK) data, It should be noted that should be taken into account.
According to the Competition Authority's Report, foreign investors invested in Turkish companies in 36 different mergers and acquisitions in 2022. According to the data, the Netherlands and the United Arab Emirates ranked first with 5 transactions in transactions where Turkey was the target company. At the same time, according to the startups.watch "Turkish Startup Ecosystem Report: Year in Review 2022" report, it is stated that foreign investors are involved in one out of every 5 transactions [2]. However, angel investor rounds, seed investment rounds, and A, B and C series rounds are also included in the related report.
According to the Competition Authority's Report, when a total of 181 transactions carried out in 2022 are listed on the basis of transaction price according to their economic activity fields, the ones that have the largest share in the sectors invested in around the world in 2022 are as follows:
Wholesale and retail trade and repair of motor vehicles and motorcycles
Programming and broadcasting activities
Installation and repair of machinery and equipment
Manufacture of basic pharmaceutical products
financial services
Manufacture of chemical products
Customization Operations
According to the information obtained by the Competition Authority from open sources, it has been observed that the total transaction price in the three transactions, where tender processes have been carried out, is approximately 13.9 billion TL. It has been observed that the highest transaction cost is in airport management. On the other hand, it has been concluded that the share of privatization transactions in total Turkey Transactions in 2022 is approximately 16%.
There are 7 privatization transactions decided by the Competition Board in 2022. The said transactions are as follows:
Generation, transmission and distribution of electrical energy
airport management
Natural gas import and distribution
Production
Sources
[1] Rekabet Kurumu, "Birleşme ve Devralmalar Görünüm Raporu 2022", 06.01.2023. https://www.rekabet.gov.tr/Dosya/bd_gorunum_raporu_2022.pdf
[2] startups.watch, "Turkish Startup Ecosystem Report: Year in Review 2022", 17.01.2023.
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