Türkiye's 2024 M&A report card: 465 deals, $6.5 billion in volume
High interest rates, geopolitical tensions, economic slowdown, and regulatory pressures were among the uncertainties affecting global M&A activity in 2024. During this period, 465 M&A transactions totaling $6.5 billion took place in Türkiye.
The uncertain climate of 2024, marked by close monitoring of macroeconomic indicators and driven by geopolitical tensions, the US elections, and regulatory pressures, was also felt in global merger and acquisition activity. Branchout Türkiye, a global provider of corporate finance, strategy, and management consulting services, released its 2024 edition of its now-traditional Mergers and Acquisitions Outlook report, presenting a report card for mergers and acquisitions from both the global and Turkish markets.
According to the report, global merger and acquisition volume in 2024 remained at $3.5 trillion, below the historic peak in 2021. Meanwhile, "mega" transactions of $5 billion or more increased by 17% year-over-year in 2024, reaching $1.2 trillion. The top 10 transactions in 2024 accounted for 7% of the total transaction volume, with the largest global transaction being Mars' acquisition of Kellanova in the retail and consumer products segment, with a volume of $35.9 billion.
Financial investors were selective.
Branchout Türkiye's report also shed light on behavioral trends among strategic and financial investors. According to the report, financial investors accounted for 34% of total transaction volume and 27% of total transaction volume. While strategic investors continued to dominate the market, financial investors maintained their cautious stance.
After the 2021 peak, the decline in financial investor transaction volume continued, and the recovery in 2024 was limited. In Türkiye, $4.9 billion of the 2024 transactions were generated by strategic investors, while $1.6 billion were generated by financial investors. The total value of the ten largest transactions conducted by financial investors in Türkiye in 2024 was $1.2 billion. The top ten transactions accounted for 75% of the total financial investor transaction volume, accounting for 18% of the total transaction volume.
Hepsiburada, Insider, Mutlu Akü and Ekol Logistics stood out in Türkiye.
According to a report by Branchout Türkiye, approximately 40.2,000 mergers and acquisitions were conducted worldwide last year. This figure marked a slight increase compared to the previous year, with the technology, media, and telecommunications (TMT) sector maintaining its leadership in both transaction volume and number. AI-based solutions and software-as-a-service (SaaS) companies, in particular, continued to be on the radar of strategic and financial investors.
In Turkey, the year's most prominent deals were seen in traditional sectors such as logistics and energy, as well as the technology sector. Getir's $250 million investment from Mubadala, along with Kaspi.kz 's acquisition of a majority stake in Hepsiburada, the only transaction of the year exceeding $1 billion with a $1.1 billion transaction volume, demonstrated the synergy Turkey offers in fintech and e-commerce. General Atlantic's $500 million Series E investment in Insider stood out as a deal demonstrating the global potential of Turkish SaaS players. Meanwhile, Quexco's acquisition of Mutlu Akü and DFDS's acquisition of Ekol Logistics' international transportation operations were considered indicators of Turkey's openness to global integration in the energy transition and logistics chain. Turkey's TMT sector also aligned with the global trend, with $2.6 billion in volume and 238 transactions.
Notable agreements were also made in the real estate and energy sectors.
Last year witnessed notable deals in the Real Estate, Construction, Tourism, and Energy, Mining, and Oil sectors. Within the Real Estate, Construction, and Tourism sector, which has a transaction volume of $1.3 billion, Doğuş Holding's $418 million acquisition of a 19% stake in Galataport and Orjin Group's $500 million acquisition of a 42% stake in İstinyePark Shopping Mall accounted for 71% of the sector's volume. Among the developments in the Energy, Mining, and Oil sectors were UK-based ACG's acquisition of all Polimetal Madencilik shares for $290 million, Palmet Enerji's acquisition of all Zorlu Energy Distribution shares for $200 million, CVK Mining Operations' acquisition of 70% of Virtus Mining shares for $159 million, and Doğan Holding's acquisition of 75% of Gümüştaş Mining shares for $123 million.
The goal of mergers and acquisitions is transformation, not growth.
The merger and acquisition deals we've seen in Türkiye throughout 2024 signal that Turkish companies will increasingly be subject to transformative M&A transactions. Many of these deals reflect trends in technology, digitalization, and environmental, social, and governance criteria. This brings us to a broader narrative. 2024 demonstrates that M&A transactions are not merely financial instruments; they also represent a strategic transformation in line with digitalization, organizational renewal, and sustainability goals.
Transactions involving foreign investors increased.
In 2024, the TMT sector was followed by real estate, construction and tourism, and energy, mining, and oil sectors in Türkiye. According to the Branchout Turkey M&A Outlook 2024 report, 101 transactions involving foreign investors in 2024 generated $3.6 billion in transactions. This figure, recorded at $1.9 billion the previous year, signaled an increase in foreign investor participation in M&A transactions. The three largest foreign transactions came from Kazakhstan, the US, and the UK.
Companies with a scalable structure will be the primary target.
Strategic partnerships with artificial intelligence and advanced technology-focused startups, as well as models based on talent transfer, are expected to become more widespread. The clearer definition of ESG criteria indicates that we are facing an era of increased merger and acquisition activity in areas such as green energy, carbon management, and the circular economy. In this new era, we believe that mid-sized but high-potential companies, in particular, will be increasingly on the radar of both domestic and global investors. M&A transactions no longer represent solely growth but also restructuring, market access, and the creation of a competitive advantage.