Opportunities and pitfalls

Author: | Published: 1 Oct 2009

Despite global and local market conditions that impose challenging and high-cost financing to any large M&A deal in 2009 in Turkey, 2008 was quite the opposite for the Turkish energy market. On account of large privatisations completed in electricity and gas distribution areas and private deals concluded in power generation segment in 2008, the total value of M&A deals in the Turkish energy market reached $6.6 billion across 19 deals.

Of these 19 deals, 16 were related to utilities, including large privatisation deals for electricity and gas distribution companies. It is expected that the next few years will be busy for the electricity distribution market, due to the complete privatisation of 18 state-owned electricity distribution companies that are still in the portfolio of the Privatisation Administration.

The regulatory environment relating to energy market in Turkey has been administered by the Energy Market Regulatory Authority (the Authority) since...