Merger And Acquisition Transactions Requiring Approval From The Competition Board And Current Thresholds

The Law on the Protection of Competition ("Law") aims to prevent all kinds of legal transactions and behaviors such as agreements, transactions, mergers, acquisitions, decisions and practices that prevent, restrict or limit competition between undertakings operating within the borders of the Republic of Turkey or affecting the goods and services markets operating within the borders of the Republic of Turkey.

Even though mergers and acquisitions between undertakings may lead to situations such as price reduction or quality increase in a way to favor the consumer, mergers and acquisitions may also lead to a dominant position of the undertakings and a decrease in effective competition in the market. For this reason, pursuant to Article 7 of the Law, "It is illegal and prohibited for one or more undertakings to merge, or for an undertaking or a person to acquire – except by inheritance – assets, or all or part of the partnership shares, or instruments conferring