The Turkish mergers and acquisitions (M&A) landscape in 2025 presents a compelling picture of resilience and strategic opportunity amidst a dynamic economic environment. Following a period of significant macroeconomic adjustment, Türkiye continues to attract considerable interest from both domestic and international investors seeking exposure to its diverse economy and strategic geographic position connecting Europe and Asia.
While the broader macroeconomic environment, including global inflationary trends and currency fluctuations generally affecting emerging markets, has presented certain headwinds, the Turkish market has demonstrated notable resilience and adaptability. In addition, heightened geopolitical developments in the wider region have introduced a degree of caution across regional economies. For Türkiye, which occupies a strategically significant position at the crossroads of Europe and the Middle East, these dynamics have underscored the importance of robust risk assessment frameworks in cross-border transactions, while also reinforcing the country's role as a key hub for regional investment flows. Against this backdrop, key sectors anticipated to drive M&A activity in 2026-2027 include technology and digital services, energy and renewables, healthcare, financial services, and consumer goods. Private equity interest is increasing, with both regional and global funds actively seeking opportunities to deploy capital in Turkish assets that offer compelling growth prospects and attractive valuations relative to comparable markets. As stakeholders navigate this evolving landscape, understanding the regulatory framework, market dynamics, and emerging trends will be essential for identifying and executing successful transactions.
On 7 January 2026, the Turkish Competition Authority released 2025 M&A Outlook Report (the Report). The Report reveals a record-breaking year for Turkish M&A activity. The Turkish Competition Board assessed a total of 416 merger and acquisition transactions in 2025, representing a 33.8% increase from the 311 transactions recorded in 2024. This is the highest number of transactions in the last thirteen years since the publication of such reports by the Competition Authority, which began in 2013.
The sectors that attracted the most significant investment during this period include: (i) computer programming, consultancy and related activities, (ii) electricity generation, transmission and distribution, (iii) wholesale trade in specialised stores, (iv) manufacture of chemicals, fertilisers and plastics, and (v) activities of monetary intermediation. In terms of transaction value, the wholesale and retail trade sector led with approximately TRY 110.7 billion across 24 transactions, followed by finance and insurance activities (TRY 95.9 billion across 9 transactions) and manufacturing (TRY 92.7 billion across 55 transactions).
Record-Breaking Transaction Values
The year 2025 marked a historic milestone for Türkiye's M&A market. Pursuant to the Report, the total transaction value for M&A transactions where the target company was Türkiye-based reached TRY 466 billion (approximately USD 11.81 billion), excluding privatisations. When the 19 privatisation transactions valued at TRY 108 billion (approximately USD 2.74 billion) are included, the total transaction value for transactions involving Türkiye-based companies reached approximately TRY 574 billion (approximately USD 14.54 billion). In both Turkish liras and US dollars, this represents the highest transaction value on record since 2013. These figures demonstrate a notable increase in M&A transactions compared to the previous year, reflecting a growing level of activity and renewed confidence within the market.
Trends and Developments
Foreign Investment Activity
The significant number of transactions involving foreign parties demonstrates the strong interest of foreign investors in the Turkish market. In 2025, among the merger and acquisition transactions assessed by the Turkish Competition Board, 55 transactions featured foreign investors investing in Türkiye-based companies. When ranked by number of transactions, Germany-based investors took first place with nine (9) transactions, followed by France with six (6) transactions, and the United States, United Arab Emirates, Sweden, China, Luxembourg, United Kingdom, Netherlands, and Switzerland each with multiple transactions.
The total investment value envisaged by foreign investors in these 55 transactions was approximately TRY 277.5 billion (approximately USD 7.03 billion). This value comprises approximately 48.3% of the total transaction value generated in transactions involving Türkiye-based companies in 2025, including privatisations. The USD 7.03 billion figure represents the highest level of foreign investment in Türkiye Transactions over the past two years and the second-highest level since 2013, reflecting a genuine expansion in foreign investment volume.
Technology as Leading Sector
The technology sector has emerged as the most attractive investment avenue, with Türkiye's fast-growing digital economy continuing to draw investor interest. Notable transactions include Uber's acquisition of an 85% stake in Trendyol Go for USD 700 million, Kaspi.kz's acquisition of a 65% controlling interest in e-commerce platform Hepsiburada for USD 1.1 billion, and CVC Capital Partners' investment in Dream Games, all reflecting sustained interest in the technology and gaming sector.
Recalibration of Merger Control Rules
In February 2026, the Turkish Competition Authority eased merger control requirements by raising notification thresholds through Communiqué No. 2026/2, published in the Official Gazette dated 11 February 2026. Under the new tests, a filing is triggered if the transaction parties’ combined Turkish turnover exceeds TRY 3 billion (USD 76 million) and at least two parties each exceed TRY 1 billion (USD 25.33 million), or, alternatively, if in acquisitions the target (or in mergers at least one party) exceeds TRY 1 billion (USD 25.33 million) in Turkish turnover and at least one other party has worldwide turnover above TRY 9 billion (USD 228 million). These changes materially raise the bar for notifiability and are designed to narrow the notification obligation to larger-scale transactions.
Furthermore, the technology‑undertaking exception has been recalibrated by introducing a local turnover floor of TRY 250 million (USD 6.33 million) for the relevant technology undertaking, replacing the prior rule under which no target‑side local threshold applied. Specifically, for mergers involving at least one technology undertaking established in Türkiye and for acquisitions of a technology undertaking, the otherwise applicable TRY 1 billion (USD 25.33 million) local threshold is set at TRY 250 million (USD 6.33 million) for that party.
The policy intent is to concentrate review resources on higher‑risk, larger transactions while excluding small‑scale deals from notification and thereby expediting approvals for those transactions that remain notifiable. We expect this recalibration to ease execution for mid‑market and cross‑border bolt‑on deals that would previously have required filings under the lower thresholds, contributing to greater timetable certainty.
Regional Geopolitical Developments and Market Impact
Heightened tensions in the broader region over the years, have introduced an additional layer of complexity to the investment environment in Türkiye. As a country strategically positioned at the crossroads, Türkiye is inherently sensitive to shifts in regional stability. While the direct impact of such developments on Turkish M&A activity has, to date, remained limited, the broader consequences, including shifts in investor risk appetite and a volatile region are factors that market participants continue to monitor closely. However, Türkiye's demonstrated market resilience, as evidenced by the record-breaking transaction volumes and values achieved in 2025, suggests that the country's underlying economic fundamentals and the depth of its M&A pipeline continue to provide a strong counterbalance to external regional geopolitical headwinds. Going forward, the evolution of regional dynamics will remain a key variable for stakeholders assessing the risk-reward profile of the Middle Eastern and Turkish M&A opportunities and continued geopolitical stability will be instrumental in sustaining the positive momentum observed in recent years.
Looking Ahead
The outlook for Türkiye's M&A market in 2026 remains cautiously optimistic, underpinned by the extraordinary momentum generated in 2025. Foreign investor confidence, reflected in TRY 277.5 billion (approximately USD 7.03 billion) of inbound investment comprising nearly half of total transaction value, underscores the enduring appeal of Turkish assets. Looking ahead while regional geopolitical dynamics will continue to warrant careful monitoring, the resilience demonstrated by the Turkish M&A market in 2025 provides a strong foundation for continued growth, making Türkiye an increasingly compelling destination for cross-border investments in the years ahead.