Mergers and acquisitions (M&A) are strategic legal processes that involve the integration or takeover of one company by another. These transactions are crucial for corporate growth, market expansion, and competitive advantage. At ER&GUN&ER Law Firm, our experienced Turkish commercial lawyers assist companies through all stages of mergers and acquisitions, from negotiation to regulatory compliance.
What Is a Merger or Acquisition?
A merger refers to the union of two companies into one legal entity. An acquisition refers to one company acquiring ownership and control over another, which may or may not maintain separate legal status. Both structures require careful legal, financial, and operational planning.
Types of Mergers
- Horizontal Merger: Between companies in the same industry to expand market share and reduce competition.
- Vertical Merger: Between companies at different stages of the supply chain to improve production and efficiency.
- Conglomerate Merger: Between companies in unrelated industries to diversify and reduce risk.
How Mergers Are Structured
Mergers and acquisitions in Turkey can be structured as:
- Share Purchase: The acquiring company buys shares of the target company. Shareholders must approve the transaction, and it may include share swaps or cash payments.
- Asset Purchase: The acquiring company purchases selected assets and liabilities. This structure allows more control and reduces risk, but tax obligations may apply differently.
Financing Acquisitions
Common financing methods include:
- Cash payments
- Debt financing or issuing bonds
- Share swaps or equity financing
- Private equity or strategic investment
Cost savings, access to new markets, and synergy creation are the key drivers behind M&A financing strategies.
Mergers & Acquisitions under Turkish Law
Under the Turkish Commercial Code No. 6102 and Capital Markets Law, M&A transactions must meet specific legal, procedural, and tax-related requirements. These include:
- Due diligence (financial, legal, operational)
- Board and shareholder approvals
- Regulatory clearance from the Turkish Competition Authority (for large-scale mergers)
- Public disclosures for publicly traded companies
Our mergers and acquisitions law firm provides end-to-end support, including negotiation, drafting, regulatory filings, and post-merger integration planning.
Get Legal Assistance
At Istanbul Lawyer Firm, we provide legal guidance for domestic and cross-border mergers, helping Turkish and foreign companies navigate compliance, contractual drafting, shareholder agreements, and dispute prevention. Our English-speaking lawyers in Turkey ensure full legal protection in every M&A phase.
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