THE INVESTMENT RACE

Capital (Turkey) - - ANALYSIS -

In the last few months of 2014, the major groups in Turkey have entered what is virtually an investment competition. After Y ld z Holding’s acquisition of United Biscuits for $3.2 billion came the decision for a giant investment by Koç Holding. Tofa announced that it will invest $1.4 billion over the next two years in four models, including the new Doblo. In fact, when we look at the year as a whole, we can say that the major groups performed well in terms of investment. Koç Holding realized TL 5 billion in investments in the first nine months of the year alone. IC Holding realized TL 4.683 billion in investments, while Sabanc Holding realized TL 2.899 billion, Zorlu Holding TL 2.23 billion and Turkcell TL 1 billion.

The moves made by Y ld z, Koç and Rönesans in the final months of the year enlivened the investment climate and it looks as though this liveliness will continue in 2015. Several groups will make significant investments in 2015. There is no letup in Sabanc Holding’s investments this year. The group is aiming to invest approximately TL 3.122 billion during the course of the year. IC Holding entered the year with investment plans worth TL 1.23 billion, while for Boydak and Zorlu Holding the figure was TL 1.115 billion.

WHERE WILL THE BUDGETS GO?

In terms of the destinations of the investments that will be made this year, it is the groups’ main sectors that come to the fore. In terms of sectors, most of the investments will be concentrated in energy, logistics, real estate, health and retailing. In addition to opening

2014 was a good year in terms of investments. Yıldız Holding bought United Biscuits for $3.2 billion. Large companies such as Koç, IC, Sabancı and Zorlu continued with massive investments with budgets of billions of Turkish Lira. It

is clear that this trend is going to continue in 2015.

Zorlu will spend half a billion Turkish Lira, mostly on energy and consumer durables. Boydak Holding has allocated a large proportion of its $500 million budget to energy. Borusan Holding will focus on strategic investments

and on completing the major investments it has

started.

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