e-book2011

New Guidelines for Mergers and Acquisitions

Att. Zeynep Tuncer

The Guidelines for Undertakings Concerned, Turnover and Ancillary

Restraints in Mergers and Acquisitions (the “Guidelines”) which was

published in the official website of the Competition Authority on June

27, 2011, was prepared with a view to facilitate the enforcement of the

Communiqué No. 2010/4 Concerning the Mergers and Acquisitions

Calling for theAuthorization of theCompetitionBoard (the “Communiqué

No. 2010/4”).

Legal Grounds in the Preparation of the Guidelines

Article 7 entitled “Mergers and Acquisitions” of the Act No. 4054

on the Protection of Competition (the “Competition Act”) prohibits

operations ofmerger or acquisitionwhichwould create a dominant position

or strengthen a dominant position and result in significant lessening of

competition in a market for certain goods or services within the whole

or a part of the country. The same article states that the Competition

Board (the “Board”) shall declare,

via

communiqués the types of mergers

and acquisitions which have to be notified to the Board and for which

permission has to be obtained in order for them to become legally valid.

The Board, in compliance with this article, first issued the

Communiqué No. 1997/1 on the Mergers and Acquisitions Calling for the

Authorization of the Competition Board (the “Communiqué No. 1997/1”),

which foresaw the market share threshold system; and subsequently, the

Communiqué No. 2010/4 which provides the turnover threshold system

to replace the market share threshold system.

Article of August 2011