For several months, Turkey has been experiencing the most extraordinary times in its history. Amidst all the confusion, one of the most striking issues related to the economy is that mergers and acquisitions have come to a halt. Whatever the sector, all companies that had until recently been the focus of mergers and acquisitions say that there has been a striking decline in the number of offers.
They say that, in addition to developments in the global economy, the reason for this is the change in the political and economic conjuncture in Turkey. When asked “Will the mergers and acquisitions market pick up again in the near future?” they do not have a clear answer.
Over the last few years, there is virtually no company in Turkey which hasn’t had someone knocking on its door. During this period many companies in every sector have realized important partnerships with investment funds or institutions looking to make strategic investments.
But the political and economic developments of recent months have significantly changed this picture. Today, everybody is saying that merger and acquisition offers have abruptly ceased.
Mark Mobius, who heads the Emerging Markets Group at Franklin Templeton, knows the money markets very well and closely follows every movement, confirms the slowdown in Turkish mergers and acquisitions. “The ignoring of legal regulations, the inclusion of foreign investors in some judicial investigations and government pressure have been cause for concern. This is the reason for the recent slowdown in Turkey,” he says.