Local firms put $1 bln in assets abroad

ISTANBUL - Anatolia News Agency

Turkish firms have made acquisitions abroad in many sectors including construction. Hürriyet photo

Turkish companies have spent $1 billion in acquiring between 20 and 25 foreign firms in the last 10 months of this year despite the volatile global economic climate.

These acquisitions have primarily been in the electronics, logistics, construction, port-management, textile and infrastructure sectors.

“Many of these acquisitions were in Europe, Russia and South Africa. The most significant advantage for Turkish firms is their flexibility and easy adaptation to other markets,” said Deloitte Turkey Corporate Finance Partner Başak Vardar, according to an Anatolia news agency report.

Ernst & Young Turkey Corporate Finance Head Müşfik Cantekinler said Turkish companies’ overseas investments gained momentum after 2005 with Turkey’s increasing economic liberalization.

A joint study by the Foreign Economic Relations Board (DEİK), Turkey’s Kadir Has University, New York Columbia University Vale Center (VCC) and KPMG calculated Turkish companies’ foreign assets to be $31.4 billion with foreign sales volumes at $14.7 million.

According to the study, Sabancı Holding takes the lead in terms of total assets abroad. Doğuş Group comes second followed by Enka in third place. Specific Turkish companies that have acquired overseas assets include Arçelik, Kale Group, and Yıldız Holding’s Polinas.