The Turkish referendum on Sunday saw President Recep Erdogan win sweeping new powers. However, while most of the coverage has been trying to interpret the geopolitical ramifications of the outcome, the move to a more executive-led government is already putting Turkish businesses and dealmaking in the spotlight.
While it’s too early to draw conclusions, the initial response from the continent isn’t promising. Politicians from Austria, Germany, France and Denmark have all called on the EU to end talks over Turkey’s decades-long negotiations to join the bloc. This move would likely isolate the country from a large trading partner and possibly hamper future deal flow.
However, news in the last week suggests that, at least for now, investor appetite for Turkish companies is still apparent. LVMH-owned Sephora recently acquired cosmetics retailer Tekin Acar, while Global Investment Holdings (IST: GLYHO) revealed its intention to float its port and harbour business for $250 million on the London Stock Exchange later this year.
Japanese tech giant Hitachi meanwhile has announced plans to transfer its particle beam therapy system to Turkey, a move that would strengthen the booming health tourism in the country. Young businesses are also getting their way, with online payments company Iyzico raising $15 million in Series C funding earlier this month.
Turkey still has its fast-growing economy to kick things into gear, yet how the country will fare in the long term if Europe turns its back remains to be seen.