M&A volume hits $11 billion

ISTANBUL

The volume of merger and acquisition (M&A) deals in Türkiye increased in 2022 to stand at $11 billion, according to a report by Deloitte.

The M&A volume in 2022 was below the last 10-year average but still rose by 8 percent this year from 2021, the report noted.

The top 10 deals accounted for around 50 percent of the total M&A volume this year. Some 295 with a deal value of less than $10 million made up for 73 percent of all M&As, while those deals’ share in total was only 4 percent.

The largest deal was the Türkiye Wealth Fund’s (TVF) purchasing of shares in Türk Telekom. This deal alone accounted for 15 percent of all M&A volume in 2022, according to the report.

TVF announced in March this year that it signed a share purchase agreement to acquire 55 percent of shares of the telecom giant. Following the deal, TVF became the majority shareholder of Türk Telekom with a 61.68 percent stake.

The size of the average deal was $27 million, similar to the same levels seen in the past years, the reports said.

At a time when the global M&A volume contracted, the transactions in Türkiye gained momentum, said Özlem Ulaş from Deloitte Türkiye.

“Foreign investors accounted for half of all deals, but foreign investor deal volume declined from last year,” she added.

War, energy security and global inflationary pressures are the new challenges and risks, Ulaş said.

“Despite all those challenges in the investment environment, the M&A activities remained robust,” she added.