Merger & Acquisition deals to take place in Turkey in 2012 expected to reach USD 20 billion
Merger and acquisition (M&A) deals to take place in Turkey this year are expected to reach USD 20 billion in volume. Following 2011’s success, which saw USD 11.1 billion of foreign investments channeling into Turkish companies in M&A deals, the new year will see heightened activity and more foreign investments thanks to Turkish SMEs increasing appeal and the country’s ongoing power plant and distribution privatization programs.
Equity funds will be actively pursuing deals in Turkey’s M&A market in 2012, as was the custom during the last three years, largely focusing on the healthcare, energy, retail and e-commerce sectors. M&A deals in Turkey in the last three years reached USD 25 billion with large-scale deals like the acquisition of the spirit producer Mey Ickı by Diageo, Spanish BBVA’s partnership in Garanti Bank, and the privatization of Istanbul ferry services company (IDO).
Last year, the volume of M&A deals reached USD 15 billion in 241 transactions, of which 74 percent involved foreign parties, accounting for USD 11.1 billion. According to analysts, throughout 2012, the foreign investment total expected to be injected into Turkish companies will reach USD 12 billion, while large-scale privatizations will bring in about USD 8 billion.