ABSTRACT
This chapter focuses on financial earnings and mergers and acquisitions (M&As) as two facets of the financialization of the corporate sector in Turkey. It presents the ratio of non-operating income to balance sheet profits to demonstrate the significance of financial earnings for the Turkish 'real sector'. The chapter describes basic quantitative features of the emergent Turkish M&A market, assesses its magnitude in relation to the Turkish economy, specifies its sectoral composition, and discusses monopoly power as the motivating force behind the top M&As. It also focuses on telecommunications and banking to demonstrate that regulatory changes were a facilitating factor opening the way for M&As. The background of the Turk Telekom privatization and restructuring in the banking sector is described in detail to demonstrate how several elements of neoliberal restructuring laid the foundation for M&As at a historical juncture in which several of Turkey's macroeconomic indicators were viewed positively.
