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Notification to the Competition Authority
Having a share deal or an asset deal will not make any difference
with respect to the requirement to notify the Turkish Competition
Authority of the transaction. Art. 7/2 of Law No. 4054 on the
Protection of Competition shall be applicable.
Tax Expenses
Both in an asset deal and a share deal, tax expenses should be
taken into account. In general, share deals are likely to be preferable
since there are exceptional provisions.
Conclusion
The parties of a transaction should take into account all aspects of
their specific intentions, and also their mutual understanding when
they decide whether to conduct a share deal or an asset deal. In other
words, every decision to that effect should be transaction specific.
Moreover, necessary provisions, such as conditions, covenants and
representations and warranties shall be specifically regulated in the rel-
evant sale and purchase agreement based on the mutual understanding
of the parties.
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