Turkish companies on prowl in foreign markets
ISTANBUL - Hürriyet Daily News
An insight view of a Godiva store in Istanbul is seen in this file photo. Turkey’s Yıldız Holding, the food group, acquired the global cchocolate company in 2009. Photo by Ali Bekman.Turkish firms in the past five years have made 68 foreign acquisitions totaling $7.5 billion in revenues, according to a report released yesterday by Deloitte Turkey. In 2011 alone, Turkish companies made 26 overseas acquisitions worth $2.9 billion.
While the report highlights Yıldız Holdings’ purchase of Godiva Chocolates as Turkey’s most noteworthy overseas purchase, Turkish firms have shown interest in the food and beverage, service, telecommunication, logistics, production and financial services sectors.
Other noteworthy Turkish acquisitions, according to the report, are Hürriyet’s purchase of Trader Media East, Anadolu Efes’ purchase of SABMiller in Russia and Ukraine and Eczacıbaşı’s acquisition of Villeroy&Boch’s tiles.
Turkish firms are most interested in acquiring a 100 percent or majority share in overseas companies, the report said. Some firms prefer to invest with local partners familiar with the market.
The report also said the most important factors for Turkish firms to consider when investing abroad is their opportunity to gain access to new brands and labels, spicing up the market and gaining competitive advantage.
Purchases could slow in 2012
“With a possible economic slowdown and shrinkage in financial resources, we could see a lull in overseas acquisitions,” said Deloitte Corporate Finance Partner Başak Vardar in the report. “However, for companies with sound capital, the financial crisis in other countries could offer strategic oppportunities,” she added.
The top five Turkish purchases from 2007 to 2011 were Anadolu Efes’ purchase of SAM Miller in Russia and Ukraine, Yıldız Holding’s acquisition of Belgian Godiva, Gübre Fabrikaları, Tabosan, Asya Gaz Enerji consortium’s purchase of Iran’s Razi Petrochemicals, Turkcell’s purchase of Belarus
Telecom, and Yıldırım Holding’s purchase of CMA CGM, a French logistics firm.