Annual Turkish M&A Review 2013
Foreign investors’ contribution to the annual deal volume as at its lowest level ever in Turkey
Turkish market managed a sustained level of M&A activity in 2013 through 217 deals with a total deal value of around US$17.5 billion. After an all-time high number of deals and one of the highest volumes ever achieved here in the previous year, this represented a 20% and 15% year-on-year contraction in terms of deal volume and numbers, respectively.
While privatizations made up c. 38% of the annual deal volume, foreign acquirers’ deal volume dropped more than half with few large scale private sector transactions. The contribution of foreign investors to annual deal volume was limited in 2013 and remained at a level of 30%, the lowest percentage ever. The ten largest transactions comprised c. 49% of the total deal volume (including estimates for undisclosed values) in 2013. 61 transactions each with a deal value less than c. US$50 million, which accounted for 74% of the total deal number, represented only c. 17% of the total deal value.
The headlines from the report
- Privatizations, which mostly occurred in the energy sector, reached a deal volume of c. US$6.6 billion through 11 transactions and represented c. 38% of the total annual deal volume. The largest transaction of the year was again an electricity dis-co privatization, namely Toroslar Elektrik Dağıtım, taken over by Enerjisa for c. US$1.7 billion.
- Foreign investors’ deal volume (US$5.2 billion) contracted by 60% as compared to 2012 (US$13 billion) with a scarcity of big ticket private sector transactions led by foreign buyers historically; and the average deal value of the largest ten transactions by foreign investors realized as one-fourth of the previous year’s.
- Subsequent to a record breaking year in 2012 with 57 transactions, private equity transactions grew by 30% y-o-y in terms of value to c. US$2.1 billion through a reduced number of 35 transactions in 2013.
- The largest 10 deals, which were deals over US$400 million, made up c. 49% of the total deal volume.
- Energy and manufacturing took the lead with 29 and 24 deals, respectively.