Number of mergers in Turkey rises in first quarter
Güncelleme Tarihi:
Hürriyet Daily News
Oluşturulma Tarihi: Nisan 08, 2009 00:00
ISTANBUL - In the first quarter of the year, mergers and acquisitions in Turkey numbered 66, an increase of 40.4 percent compared with the corresponding period of 2008.
According to the latest data from Internet Securities Inc. DealWatch, released yesterday, the total value of deals declined 59.7 percent to 2.34 billion euros.
"Having seen the deal number growing by almost 10 percent year-on-year to over 8,000 in emerging markets, we witnessed their joint valuation having tumbled by 25 percent year-on-year to under 395 billion euros in 2008," said Jakub Siekierzynski, head of mergers and acquisitions research at DealWatch.
"Many announced deals were either called off or at best put off indefinitely, especially during the fourth quarter," he said.
"The first three months of 2009 have not given definite answers to the future of M&A activity. Specifically, the pricing of companies has fallen even further and the deal number globally decreased by one-third in year-on-year terms," Siekierzynski added.
Still, the global picture is not "as bad as initially expected," according to Siekierzynski. "We have already seen a growth in M&A deal flow in March, which could be a sign of the whole industry rebounding and bode well for the whole 2009 and beyond."
Power of BRIC
The most active target countries were again the BRIC nations, namely Brazil, Russia, India and China. China recorded 1,393 deals in 2008, while Russia recorded 1,333, Brazil posted 609 and India reported 540 mergers and acquisitions.
Smaller countries such as Ukraine, Poland, Romania and Argentina have also performed well, with 524, 432, 256 and 238 deals, respectively.
With 4,315 transactions, nearly 54 percent of deals carried out in emerging markets were acquisitions of majority stakes, according to DealWatch data.
Compared with the same period of 2007, the ratio dropped from 57.6 percent, but acquisitions were still the most frequent transaction type.
"Privatizations witnessed a slight drop, as there were 365 such deals carried out in 2008, against 387 a year earlier," DealWatch said. "Lowered valuation of enterprises made state treasuries reluctant to dispose of national ownership."
Overall in emerging markets, 2,346 deals were carried out in manufacturing, compared with 2,236 in 2007. Finance and insurance came in second with 959 transactions, compared to 960 such deals in 2007. Information and IT was third with 886 deals, versus 937 a year earlier.
"Having seen the deal number growing by almost 10 percent year-on-year to over 8,000 in emerging markets, we witnessed their joint valuation having tumbled by 25 percent year-on-year to under 395 billion euros in 2008," said Jakub Siekierzynski, head of mergers and acquisitions research at DealWatch.
"Many announced deals were either called off or at best put off indefinitely, especially during the fourth quarter," he said.
"The first three months of 2009 have not given definite answers to the future of M&A activity. Specifically, the pricing of companies has fallen even further and the deal number globally decreased by one-third in year-on-year terms," Siekierzynski added.
Still, the global picture is not "as bad as initially expected," according to Siekierzynski. "We have already seen a growth in M&A deal flow in March, which could be a sign of the whole industry rebounding and bode well for the whole 2009 and beyond."
Power of BRIC
The most active target countries were again the BRIC nations, namely Brazil, Russia, India and China. China recorded 1,393 deals in 2008, while Russia recorded 1,333, Brazil posted 609 and India reported 540 mergers and acquisitions.
Smaller countries such as Ukraine, Poland, Romania and Argentina have also performed well, with 524, 432, 256 and 238 deals, respectively.
With 4,315 transactions, nearly 54 percent of deals carried out in emerging markets were acquisitions of majority stakes, according to DealWatch data.
Compared with the same period of 2007, the ratio dropped from 57.6 percent, but acquisitions were still the most frequent transaction type.
"Privatizations witnessed a slight drop, as there were 365 such deals carried out in 2008, against 387 a year earlier," DealWatch said. "Lowered valuation of enterprises made state treasuries reluctant to dispose of national ownership."
Overall in emerging markets, 2,346 deals were carried out in manufacturing, compared with 2,236 in 2007. Finance and insurance came in second with 959 transactions, compared to 960 such deals in 2007. Information and IT was third with 886 deals, versus 937 a year earlier.