January 2024

Economic & business news from Türkiye

Flight of the first Turkish astronaut into space

Turkey's very first astronaut, Colonel Alper Gezeravci, a 44-year-old F-16 fighter pilot, took off from the Cape Canaveral base in Florida (United States), for a 14-day mission in orbit around the Earth . The flight, carried out with a SpaceX rocket, was initially planned for January 4 then postponed to the night of January 18. It was finally carried out on Friday January 19 at 12:49 a.m. Turkey time (9:49 p.m. GMT).

Colonel Gezeravcı will travel to the International Space Station (ISS) as part of Axiom Mission 3 (Ax3), to carry out a series of scientific experiments for universities and science centers in Turkey. The Turkish astronaut is accompanied by Spanish, Italian and Swedish colleagues. The international crew is expected to dock with the ISS on Saturday. They will join seven people already on board. Before them, only 273 astronauts stayed aboard the ISS. The trip into space was made aboard a private shuttle from the American company Axiom Space, which will thus carry out its third mission in partnership with NASA.

This major event marks an important milestone in the history of Turkey and demonstrates the country's space ambition. Turkey is indeed leading a serious space program through its satellites and its space agency, created in 2018 (Türkiye Uzay Ajansı).

Colonel Alper Gezeravcı spent most of his career in the Turkish army. He has accumulated 15 years of flying experience on numerous aircraft, including the famous F-16. He was a captain at Turkish Airlines for 7 years, but also a captain, flight safety manager and captain in a commercial airline. Before preparing for his space mission, he was assigned to the 10th command unit at the Adana base. Before his trip to space, he said he was ready to “take the dreams of the Turkish people into the depths of space.”

Source: Daily Sabah, January 19, 2024

Mergers & acquisitions 2023: 8 billion USD in transactions

According to Deloitte Turkey report, M&A transactions in Turkey amounted to USD 8 billion in 2023 compared to USD 11.5 billion in 2022. Despite a 30% drop, foreign investors maintained a level of interest similar to previous years with 96 transactions for a total value of USD 5.2 billion.

Contrary to the historical trend, the number of transactions worth more than 1 billion USD decreased in 2023. Among the largest transactions of the year are Getir (500 million USD), Tofaş – Stellantis (445 million USD) , Tatneft – Aytemiz (336 million USD). These are mainly operations carried out by foreign investors.

European companies remain the leading investors among foreigners. The value of their transactions reached 2.5 billion USD. Investors from the European region thus represented 55% of foreign transactions. The share of European investors in foreign investor transactions increased to 48% (41% in 2022). European investors completed 53 transactions, followed by North American investors (15 transactions). Investments from the Gulf region amounted to USD 1.5 billion across 14 transactions. Among the largest operations are Vitol - BP Turkish Petroleum, DHL Group - MNG Cargo and TotalEnergies - Rönesans Energy.

In terms of sectoral distribution, the technology sector maintained its leading position. 85 transactions were completed in the technology sector, followed by the internet and mobile services (38), financial services (38), energy (31), gaming (30), manufacturing (28) and health (26). Energy is the sector that occupies first place in terms of value (570 million USD).

The global #fusacq trading trend is downward contracting for the second consecutive year in 2023. Transaction volume fell to USD 2.3 trillion, with a significant annual decline of around 25%.

Source: Dünya, January 3, 2024

Annual inflation reaches 64.77%

Inflation in Turkey reached 64.77% in 2023, a figure that remains high but slightly lower than market forecasts (65.1%). This figure is mainly explained by the increase in prices for transport (77% over the last 12 months), housing and public services (40.4%), leisure and culture (61.3%) and hotels , cafes and restaurants (93.2%). The price of food has reached its highest level, reaching a total of 72% annually.

Experts estimate that the recent announcement of the 49% increase in the minimum wage based on July 2023, i.e. almost 100% based on January 2023, brings the minimum monthly salary to 17,002 TL NET or 20,002.50 TL GROSS (≈ 625 Eur GROSS = 531 Eur NET) would continue to fuel this strong inflation.

The estimates (and objectives) of the Medium-Term Economic Governance Plan are for an inflation rate of 33% for 2024 and 15% for 2026.

Source: Anadolu Agency, January 3, 2024

Parisian TapNation acquires Turkish UA Hero

French mobile game developer and publisher TapNation has acquired Turkish UA Hero. UA Hero is a company that offers an AI-powered user acquisition and monetization platform that optimizes advertising campaigns for mobile gaming companies. It helps clients effectively reach their target audiences and maximize monetization opportunities through advanced algorithms; UA Hero will notably allow TapNation to improve its user acquisition strategies.

TapNation joins the list of powerhouse publishers, like King and Zynga, that have leveraged data analytics companies and in-app monetization platforms to automate UA with the help of AI. This is part of a broader trend accelerated by privacy changes that make targeting more difficult. French TapNation, founded in 2019, recently raised EUR 15 million in a funding round from investors like Re-Sources Capital and Paluel-Marmont Capital. To date, the company has launched more than 100 games, generating more than 1 billion downloads. UA Hero also recently received a USD 1 million investment from Bogazici Ventures.

More generally, the gaming ecosystem in Turkey started in the early 2010s and accelerated with mobile gaming from 2012. Since 2017, it has whetted the appetite of game developers and investors. The gaming industry reached its peak during the pandemic propelling two gaming start-ups to unicorn status (Peak Games and Dream Games). Today, the ecosystem includes 740 game studios, 12 game incubation centers, 21 accelerator programs, 2 game clusters and 8 games-only investment funds. Turkey is the ecosystem with the largest number of game studios in Europe after the United Kingdom.

Source: Multiplatform.ai, January 2024

Türkiye: 4th world market for Peugeot

Turkey has become the 4th global sales market for the Peugeot Türkiye brand in 2023, among 147 countries where it is present, selling a total of 78,632 units (+141% vs. 2022). It ranks behind France, Italy and the United Kingdom and is ahead of Spain.

This performance gives Peugeot 5th place among the most marketed brands in Turkey with a market share of 6.4% (compared to 4.2% in 2022) and makes it leader in the SUV segment with 9.8% share. Steps. In other words, one in ten SUV vehicles sold in Türkiye is Peugeot brand. Present with 4 different models in this category (2008, 3008, 408 and 5008), motorists' interest in Peugeot's SUV models allowed the brand to close the year with 48,201 vehicles sold.

The Peugeot 3008 is the brand's best-selling model (18,048 units sold). The 2008, Peugeot's second best-selling model (18,005 units), is the leader in its segment with a share of 12.3%. The D-SUV 5008 model continues to be one of the most popular models in its class. Finally, the 408, the latest SUV model launched in March, managed to reach sales of 9,729 units, less than a year after its launch. The latter also became the winner of the “Design of the Year” category during the 8th “Car of the Year in Turkey” competition organized by the Automobile Journalists Association (OGD).

The brand intends to continue its performance this year thanks to the renewal of its models while emphasizing that 2024 will also be the year of electric models.

Source: Ekonomim, January 12, 2024

Turkish electric buses are invited to the Paris 2024 Olympic Games

The Paris 2024 Olympic Games are committed to a major environmental ambition by wishing to take up the challenge of being the “greenest” Games in History. The aim is to halve the carbon footprint of the Games compared to previous editions. Paris 2024 therefore intends to follow a policy focused on sustainable development in many areas, from travel to accommodation, sports facilities to security.

Public transport will therefore play a leading role and electric vehicles will be favored in particular for transfers. It is in this context that B.E. Green and TEMSA signed an agreement for the delivery of 8 TEMSA model LD SB E electric buses which will be used for spectator transfers within the city in Paris.

The model is available in 12 or 13 meters and has a capacity of 63 passengers. 3 battery capacity options exist: 210, 280 and 350 kWh. Its range can reach up to 350 km and its full charge capacity in approximately 2 hours. All driving information is easily tracked using the fully digital dashboard. This model, launched last year at the IAA Transportation exhibition in Hanover, bears the title of Europe's first electric intercity bus.

Source: Dünya, January 3, 2024

Accor plans 50 hotels within 5 years in Türkiye

The French hotel chain Accor has announced a strengthening of its offer in Turkey by planning 50 hotels within 5 years including 14 hotels by the end of 2024. Indeed, Turkey is an important tourist destination globally and the French group There are 68 installations there. The chain is making “very rapid investments” there, driven by strong demand both in terms of summer tourism and business travel.

Tourism is a key sector of the Turkish economy. In addition to being an important source of foreign exchange, it contributes around 10% to GDP and provides employment to 1.7 million people in accommodation and food services, or roughly 5% of the total employment. The country has more than 17,000 #hotels with more than 900 chains (30% of which are international). In 2023, the country welcomed more than 50 million tourists and 2 Turkish cities were in the top 10 most visited cities in the world (Istanbul 8th and Antalya 10th) according to a report published by Travelness. In addition to being a popular destination for summer tourism, it is also a very popular country for medical tourism which welcomed 1.8 million medical tourists in 2023 (+30% vs. 2022).

An international group, Accor has more than 40 brands and 5,500 hotels in 110 countries. With this announcement, the group also declared the establishment of 50 hotels in Saudi Arabia.

Source: Dünya, December 26, 2023

Sabiha Gökçen Airport gets a 2nd runway

Turkey has inaugurated the 2nd runway of Sabiha Gökçen Airport, an airport located on the Asian side of the city of Istanbul. It is the 2nd largest airport and the 3rd busiest in Türkiye.

Project cost: 970 million USD.

With a length of 3,540 meters and a width of 60 meters, the runway has three parallel taxiways measuring 3,520 meters, 3,000 meters and 2,700 meters respectively. Alongside the construction of this runway, the airport also modernized all its superstructure facilities, including the central tarmac with a capacity of 62 aircraft, the cargo tarmac with a capacity of 40 aircraft and its related facilities (air tower). control, technical block, fire department, brigade building, garage). In order to increase the efficiency of the airport, the new runway will be used for landings while the existing one for takeoffs. With this new runway, airport traffic is expected to double. In 2023, the airport will reach a record number of 34 million passengers and handle some 208,000 flights. Thanks to the new runway, the airport's capacity will increase to 85 million passengers per year.

In just a few years, Turkish airports have experienced a meteoric rise in the world air traffic rankings. In 2022, the country was ranked third among European countries and sixth in the world in terms of passengers. Three Turkish airports are among the top 20 in Europe and among the top 50 in the world. Turkey has made massive investments to develop and modernize its airport infrastructure over the past two decades and has seen the number of its airports rise to 57 from 26 in 2002.

Source: Daily Sabah, December 25, 2023

Airbus delivers its first A321neo to Pegasus Airlines

Airbus has delivered its first A321neo assembled on its new A320 family final assembly line (FAL) in Toulouse to Turkish low-cost airline Pegasus Airlines. This is the first delivery from the European aircraft manufacturer's latest state-of-the-art production facilities, fully modernized and equipped with the latest technology. Located in the former A380 “Jean-Luc Lagardère” building, the assembly line reflects Airbus' desire to meet growing global demand for the A321neo, which now represents nearly 65% ​​of the aircraft backlog. orders for the Airbus #A320 family.

The delivery of this aircraft to Pegasus Airlines marks the start of the ramp-up of the new Toulouse FAL, which, along with the other A320 family FALs in Hamburg (Germany), Mobile (United States) and Tianjin (China), will contribute to Airbus' target of producing 75 A320 Family aircraft per month in 2026. Pegasus Airlines' fleet currently numbers 93 Airbus aircraft, including 6 A320ceo, 46 ​​A320neo and 41 A321neo. The airline also has 68 A321neos on order.

This delivery also illustrates the ambition of Turkish airlines to be recognized internationally and the country's desire to be a global aeronautical hub. Recently, the Turkish Airlines company announced a historic order for 355 Airbus aircraft (including a firm order for 220 aircraft) and the Stanbouliote Sabiha Gökçen airport inaugurated a second runway to cope with the influx, thus doubling the reception capacity passengers.

Source: Air Journal, December 28, 2023

The American Arctech expands its presence in Türkiye

The American Arctech, the world's leading provider of monitoring solutions, fixed structure and building-integrated photovoltaic systems (BIPV), has entered into a strategic agreement with the Turkish Alpon Energy marking its expansion in Turkey. Alpon Energy, founded 8 years ago, is an expert company in solar power EPC works and single axis solar tracking systems. Under this strategic partnership, it will offer project management expertise, logistical support, exploration of local opportunities and technical services, including installation supervision and product commissioning assistance. in regional markets.

With promising prospects for the Turkish solar market and strong demand for suppliers with extensive experience in international solar projects, Arctech intends to leverage this agreement to expand more broadly and become one of the leading providers of monitoring and of solar installations in Turkey and the region. According to InfoLink's research report, Turkey is one of the leading markets in the Middle East. It has recorded outstanding performance in the development of the photovoltaic industry in recent years. The country will likely achieve its goal of accumulating 59.9 GW of installed photovoltaic capacity by 2035.

Arctech has been present in the Turkish market for many years. It notably signed a strategic partnership agreement with Europower in 2018, one of the largest photovoltaic manufacturers in Turkey and also supplied its SkyLine solar monitoring system for projects in Turkey in 2019. Arctech will thus contribute to the development of renewable energies in Turkey and will take part in decarbonization objectives.

Source: PR Newswire, January 8, 2024

Moldovan Purcari vineyards expanding in Türkiye

Moldovan wine producer Purcari Wineries announced that it has acquired a 90% stake in the newly established Turkish company HTA Danismanlik Turizm Dis Ticaret Limited Sirketi. The acquisition marks a step forward for Purcari in increasing its presence and position in the Turkish market but also in the Middle East and Africa region. The transaction is in fact part of the Moldovan commercial strategy which aims to develop new markets, after the opening of a non-commercial representative office in China in 2019 and a commercial company in Ukraine in 2021.

“We have the ambition to become a regional wine champion, which is why expanding into Turkey is strategic for us. We already have good results there and by establishing a local facility we will become even more competitive,” he said. declared the president of Purcari Wineries. Purcari Wineries manages approximately 1,450 hectares of vineyards and operates seven production platforms in Romania, Moldova and Bulgaria. The company is a leader in the premium wine segment in Romania with a market share of around 25% and is the largest wine exporter in Moldova, delivering to more than 40 countries.

It is the first Moldovan state-owned company to be listed on the Bucharest Stock Exchange. Since its IPO in 2018, when it was valued at USD 100 million, the value of its securities has increased by more than 70%.

Source: Infotag January 19, 2024

The EBRD invests an amount of EUR 2.5 billion in 2023

The European Bank for Reconstruction and Development (EBRD) has invested a record amount of EUR 2.48 billion in Turkey in 2023. This figure marks an exceptional year of financial commitment from the European bank to Turkey, which receives the largest investment volume of all the Bank's beneficiary economies in 2023.

Funding was mainly directed towards ecological transition initiatives and strengthening the country's economic resilience, particularly following the February 2023 earthquakes which struck the southeast region. Indeed, in the weeks following the disaster, the EBRD announced a multi-year investment plan of EUR 1.5 billion for the affected region, aimed at supporting the recovery, reconstruction and reintegration of the economy of the region.

Other important financing for green and inclusive investment includes a EUR 100 million loan to ING Türkiye and ING Leasing to boost access to green finance; a EUR 90 million loan to tire manufacturer Brisa Bridgestone to help finance the manufacturing of fuel-efficient and low-carbon products; a EUR 70 million loan to TürkTraktör to support the modernization of the company's manufacturing facilities and continued green investments. The EBRD also continued to expand its municipal partnerships by welcoming Bursa, one of Turkey’s largest cities, to its Green Cities program. Bursa is the 5th Turkish city, and the 60th overall, to join the Bank's program.

In total, the Bank financed 48 projects in Turkey in 2023, 91% of investments contributed to the private sector and almost 58% to its transition to a green economy. 60% of projects included gender-related components.

The EBRD is one of the main investors in Turkey: more than EUR 19 billion invested in 439 projects and trade facilitation lines since 2009.

Source: EBRD, January 25, 2024

Warner Bros. Discovery acquires Turkish BluTV

Warner Bros. Discovery has acquired Turkish streaming service BluTV, Turkey's first local SVOD service. Since its launch in 2016, BluTV has seen rapid growth offering diverse content including original content, Turkish TV series and movies.

3 years earlier, the two companies had entered into a strategic partnership that made Warner Bros. Discovery a 35% shareholder of BluTV. In February 2023, HBO content and children's channels were added to BluTV, giving viewers access to channels like Cartoon Network and Cartoonito, as well as award-winning shows like "The Last of Us", "Game of Thrones » and “Sex and the City”.

“Turkey has been an important investment territory for us for over 20 years and the acquisition of BluTV brings Turkey's leading local SVOD player to our portfolio. The combination of compelling Turkish content and a wide range of the best international series and shows from Warner Bros. Discovery is an unbeatable recipe for local relevance and success. Together, we provide Turkish audiences with the most captivating visual experience and expand the reach of Turkish content globally. » said Jamie Cook Managing Director of Discovery CEE, MENA and Türkiye.

Source: Dünya, December 29, 2023

DNSSense joins the British group Noventiq

DNSSense, a global pioneer in DNS security, joins the network of the British group Noventiq. Founded in 2013 to compensate for the lack of specialized products in the DNS layer, DNSSense is today actively present in more than 70 countries and more than 1 million users use its products and services. Established by a team of 4 people, the company was included in the Deloitte Fast50 list of fastest growing companies in 2022. Headquartered in the United Kingdom, the company holds all its R&D and product processes in Turkey.

DNSSense calls itself an artificial intelligence company “We used real artificial intelligence in the domain classification processes for our first product in 2013, before the craze for ChatGPT and productive artificial intelligence was even there. (…). We offer the only product in the world that provides a definitive solution against ultra-slow DNS tunneling attacks, which are very difficult to detect and prevent today. » indicates its CEO.

Noventiq is a leader in the IT industry with more than 6,400 active employees in 60 countries. This acquisition is part of its development strategy in specific areas through external growth. The group is preparing to be listed on Nasdaq. Its 2023 turnover was more than 1.6 billion USD.

Prior to the acquisition, Noventiq signed a distribution agreement with DNSSence in September 2022, a strategy that allowed it to know and examine DNSSense more closely and move securely toward this transaction decision.

Source: Dünya, December 25, 2023

Indian BLS International acquires Turkish iData

BLS International Services LTD has entered into a definitive share purchase agreement through its subsidiary BLS International FZE, located in the United Arab Emirates, to acquire 100% of the shares of iData International and its subsidiaries for a value of 50 million EUR company. Turkish iDATA, a leading player based in Turkey, specializes in visa and consular services. It provides comprehensive visa applications and consular services to various governments. The company currently operates more than 37 Visa Application Centers (VACs) in more than 15 countries, serving the diplomatic missions of Germany, Italy and the Czech Republic among others. iDATA is notably the exclusive provider of visa and consular services to the Italian diplomatic mission since 2006 and to the German government since 2012. Its 2022 turnover amounted to EUR 19.9 million.

BLS International, a company listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE), is a preferred partner of embassies and governments around the world. The company enjoys an impeccable reputation in visa, passport, consular, e-governance, attestation, biometrics or e-visa services. It is one of the three main global players in its field.

With over 18 years of experience, BLS serves 46 governments in over 64 countries and has processed over 220 million applications to date. The company has a workforce of more than 60,000 employees and associates operating in more than 50,000 centers worldwide.

This strategic acquisition underscores BLS International’s commitment to becoming a global leader in technology services for governments and citizens. This transaction significantly expands the Indian firm’s operational footprint.

Source: Travel World, January 15, 2024

German Opta in the process of acquiring Turkish Metser

Leading German company Opta Group has filed an application with the Competition Office with the intention of becoming the largest shareholder in Turkish steel company Metser. If approval is granted, the German company will make the acquisition through its Speyside Equity fund.

German giant Opta, founded 144 years ago, is one of Europe's most established steel and foundry materials companies. It has facilities and investments in many countries such as the United States, Canada, France and Slovakia.

Turkish Metser was founded in 2007. It produces wires of special composition and alloy. Based in Izmir, Metser exports to many countries, including Egypt, Greece, Romania and Austria.

For years, Germany has been one of Turkey's main trading partners and one of its main foreign investors. The share of German investments in foreign investments in Turkey amounts to 6.4% and more than 8,000 German companies or companies benefiting from German investments operate in Turkey mainly in the sectors of industry, retail, logistics and sales. In 2023, among the largest German investments made in Turkey, we will note the acquisition of MNG Cargo by the DHL group.

Source: Steel Radar, January 5, 2024