Adjustments After the Date of the Last Audited Accounts under Turkish Merger Control Regime

Under Turkish merger control regime, the turnover is calculated based on the last audited financial statements of the merging parties. However, adjustments after the date of these audited accounts can create challenges in establishing whether a transaction meets the thresholds for notification.

The Turkish Competition Authority (Authority) requires the most recent financial data, typically from the last full audited accounts, to ensure the turnover reflects the current economic reality of the parties.  However, business conditions may change after the date of the last audited accounts, such as significant sales or asset disposals. These changes could affect whether the merging parties meet the relevant thresholds, but the Turkish competition law generally disregards such post-audit adjustments unless they are clearly documented.

For example, if a company experiences substantial growth or contraction after the last audit, this might significantly impact whether the merger should fall under the Authority’s jurisdiction. Yet, relying strictly on outdated financials without factoring in significant post-audit changes could misrepresent the competitive effects of the transaction.

For more information on adjustments after post-audit adjustments under Turkish merger control regime, please feel free to reach out to ELIG Gurkaynak at +90 212 327 1724 or through gonenc.gurkaynak@elig.com.