Turkish Competition Board Publishes 2016 M&A Activity Report

Turkey's Competition Authority ("Authority") recently published a report on mergers and acquisitions examined by the Competition Board ("Board") during 2016 ("Report"). The Report outlines transaction numbers and values, as well as investor countries and industry sectors. The Authority considered 209 transactions in 2016, with 22% involving foreign parties investing approximately TRY 18.9 billion into Turkish companies. The total reported transaction value increased 252% in 2016, relative to 2015. The Report showed electricity as the most active sector for M&A activity in 2016.

Mergers or acquisitions can reduce or restrict competition in a market by creating a dominant position or strengthening an existing dominant position. These transactions are prohibited by Article 7 of the Law on the Protection of Competition No. 4054 ("Law"). Transactions which meet certain criteria and thresholds must be notified to the Board to be legally valid.