Published On: Mon, Jan 13th, 2020

Deloitte report says 233 mergers and acquisitions took place in Turkey in 2019

Deloitte Turkey has released its report for mergers and acquisitions in Turkey, in 2019. Accordingly, 233 mergers and acquisitions took place last year, while trading volume was $ 5.3 billion, shrinking 56 percent compared to 2018.

Deloitte Turkey released its “mergers and acquisitions report for 2019”, revealing the overall outlook for mergers and acquisitions. Based on said report, while a very weak year in terms of mergers and acquisitions was left behind, total trading volume in 2019 saw its lowest level since the financial crisis, with 233 transactions totaling about $ 5.3 billion. The number of transactions decreased by 9 percent compared to the previous year, while the total volume of transactions contracted by 56 percent. In a year in which trading volume remained very limited, numerous start-up investments by venture capital funds and angel investors have kept the total number of transactions at an average level of the last 10 years.

In 2019, foreign investors continued to chase medium-sized investment opportunities within the framework of their strategic goals, accounting for 64 percent of the total trading volume. Still, limited activity throughout the year caused trading volume of foreign investors to decline to one of its historically low levels. Financial investors signed a total of 87 transactions in 2019. Both private equity funds and venture capital-backed investments shrank in 2019 compared to the past few years.  Among financial investors, private equity funds had difficulty investing (9 transactions), while venture capital funds and angel investors made 69 transactions.

Contrary to the historical trend the number of large transactions remained extremely limited in 2019 in which period there were no billion-dollar transactions

The outstanding transactions of the year were as follows:

  1. China Merchants Group – Third Bridge and North Marmara Expressway ($688.5 million)
    2. Mayhoola for Investments – Boyner retail ($405.2 million)
    3. Koç Holding – Yapı Kredi Bank ($402.6 million)
    4. Eaton Capital – Ulusoy electric ($247 million )
    5. Nippon Paint – Betek paint ($247 million)

The report also emphasized that 2019 had been one of the stagnant years in terms of mergers and acquisitions in Turkey, driven by economic and political uncertainties. It went on to say, “Inactivity throughout the year caused trading volumes of both strategic and financial investors to decline to the lowest level since 2009, when the global financial crisis hit. However, the focus of foreign strategic investors in Turkey continued and investors from the Far East, the Gulf, Europe and America confirmed that Turkey offered significant opportunities with strategic acquisitions they particularly realized in manufacturing, infrastructure, energy and technology sectors in the Turkish market.

Despite trade wars, the slowdown in economic growth, geopolitical uncertainties and the growth woes of Turkish companies stifle investor appetite, we anticipate that this year will be better in terms of mergers and acquisitions as the economy seems to be stabilizing again”

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