In the first half of 2008, M&A activity in Turkey was around US$11 billion1 through 92 deals. While serious concerns regarding effects of the global credit crunch as well as the closure case in the Constitutional Court against the ruling party AKP remain intact, they seem not to have diminished M&A activity and investors’ drive to invest in Turkey so far. Nevertheless, investors continue to be cautious in the short term.

In the first half of 2008, investments into Turkish companies persevered against all odds. Battling the credit crunch on a global level, while having to face the uncertainty raised by the judicial process in the Constitutional Court regarding the closure case of AKP, Turkish M&A nonetheless pulled through. Partly due to the credit crunch, funds’ focus shifted from developed countries towards developing countries; this may be construed as one of the drivers for the prospering first half of Turkish M&A. Such M&A activity is primarily noteworthy in its confirmation of Turkey’s continued perception as a country to invest in, where expectations for significant growth are still valid.