Pre-Merger Pitfalls: Gun-Jumping Lessons From The TCA's Param-Kartek Case

Introduction

During merger and acquisition processes, the exchange of competitively sensitive information is often necessary to ensure the potential investment's profitability and operational feasibility post-transaction. However, these exchanges must remain within the confines of antitrust laws to avoid behaviors that could be classified as "gun-jumping." The term refers to the premature integration or coordination of business operations before regulatory clearance, which is prohibited under Turkish competition law. The Turkish Competition Authority ("TCA") recently issued a significant decision¹ concerning the Param Holding and Kartek Holding transaction, shedding light on the scope of legitimate pre-merger conduct. This article provides an in-depth analysis of the TCA's ruling and its implications for businesses engaging in M&A activities.