• Thursday, June 4, 2020

Sino-Turkish deal, coronavirus could open the way for Chinese takeovers

Discussion in 'COVID-19 Coronavirus' started by beijingwalker, Apr 8, 2020.

  1. beijingwalker

    beijingwalker ELITE MEMBER

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    Sino-Turkish deal, coronavirus could open the way for Chinese takeovers


    A deal agreed by Turkey and China last month that was largely overshadowed by news of the coronavirus could lead to Chinese firms taking much bigger stakes in Turkish companies struggling to cope with the fallout from the pandemic.

    Turkey's sovereign wealth fund (TVF) is headed by President Recep Tayyip Erdoğan with his son-in-law, Treasury and Finance Minister Berat Albayrak, as his deputy.

    Founded in 2016, the TVF’s roughly $60-billion portfolio includes stakes in Turkey’s largest public bank, Ziraat, the national gas company Botaş, Turkish Airlines, the postal service, mining and chemical giant Eti Mine, Türksat satellite services, the stock exchange, the national lottery, and more.

    The $5-billion agreement TVF signed on March 26 with China’s state-funded insurance company, the China Export Credit Insurance Corporation, Sinosure, said Sinosure would provide insurance and financing to Chinese enterprises for projects in Turkey’s energy, petrochemicals and mining sectors.

    Sinosure CEO Wang Tingke said during the signing ceremony that Chinese companies had a great deal of interest in Turkey and that he would recommend Chinese contracting and investment companies to the TVF and support them with loan guarantees from financial organisations.

    The deal comes amid a steady increase in Chinese involvement in Turkey’s economy.

    The TVF borrowed $1 billion from Chinese banks in February last year to buy shares from three contractors linked to the Turkish government, which had taken on the construction of the Istanbul Finance Centre. The purchase helped save the three companies, while the TVF became the biggest shareholder in the centre.

    The TVF said in October it planned to partner energy, petrochemical, mining and logistics projects in Turkey. The agreement with Sinosure means the TVF will be able to work with Chinese companies, which could be made partners in projects in these sectors, or purchase Turkish companies outright. Sinosure will provide financing, guaranteed loans and export insurance for Chinese investors.

    Meanwhile, media reported that during a conversation with Erdoğan last month, Minister of Energy and Natural Resources Fatih Dönmez shared information on the activities of Eti Mine, Eti Boron, and Eti Silver, all companies that have been transferred to the TVF. The minister also told

    Erdoğan about a boron-based cleaning product, which prompted the president to order the immediate launch of an advertising campaign for it, media said.

    Turkey has the world’s largest reserves of boron and is the mineral’s biggest exporter. China is the biggest importer. Eti Maden, the Turkish company that produces boron, is controlled by the TVF.

    Turkish media said Chinese companies were looking to enter the market of drone and cargo transportation, as well as online sales. Turkey’s largest online shopping site, Trendyol, was purchased last year by China’s global shopping portal, Ali Baba.

    A Chinese consortium this year also bought a 51-percent share in the Marmara highway project that connects Istanbul’s Yavuz Sultan Selim Bridge and the new Istanbul Airport, for $689 million.

    Meanwhile, Chinese companies are reported to be interested in a project to build a shipping canal bypassing Istanbul’s Bosporus Straits. Bloomberg also reported in February that the operator of the new Istanbul Airport was in talks with Chinese banks to refinance 5.7 billion euros ($6.2 billion) of existing loans.

    Chinese companies are likely to prove the biggest competitors to Turkish firms in the construction sector, which are saddled with large dollar and euro-denominated debts they are struggling to repay after sharp falls in the lira from 2018 onwards.

    As a result of the coronavirus pandemic, the share values of many Turkish companies have hit rock bottom. Sinosure’s agreement with the TVF is likely to boost Chinese stakes in embattled Turkish companies and lead to a possible string of takeovers.

    https://ahvalnews.com/turkey-china/sino-turkish-deal-coronavirus-could-open-way-chinese-takeovers
     
  2. ZeEa5KPul

    ZeEa5KPul BANNED

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    I oppose any deals between China and Turkey based on general principle. China should not do business with such a regime.
     
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  3. beijingwalker

    beijingwalker ELITE MEMBER

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    Nothing wrong with buying something up when they are cheap, it's a pure business matter.
     
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  4. dBSPL

    dBSPL SENIOR MEMBER

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    The privatization of the North Marmara motorway for 20 years is not a new subject. It has at least 10 years of background, and since the very beginning, the Chinese consortium has been the most interested group then an agreement was reached in 2019.. Chinese capital group will probably support the channel istanbul project. Because China's Black Sea and Aegean investments have reached a remarkable point. They want to increase their weight in regional logistics.

    Another issue not included here is that China is the strongest country for the third nuclear power plant tender. The plant, which is planned to be built in Tekirdağ, will most likely to build by Chinese contractor and be operated by the Chinese Turkish consortium.

    But editors predictions are completely nonsense. Typical Ahval news. After dictator Sisy take power in there, ahvalnews just a s*ithole that makin propaganda against Turkey morning to evening.
     
    Last edited: Apr 8, 2020
  5. Ansu fati

    Ansu fati FULL MEMBER

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    Fortunately for China people like you are employed only for trolling purposes
     
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  6. dBSPL

    dBSPL SENIOR MEMBER

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    No need, the Chinese communist party created a self-incentive system for these masses.

    Generally I like them because I don't think they are full of hate as much as they write here. Most social media tools have a tight filtration system, probably they have an algorithm to evaluate forum entries also. Every step under state control. sometimes they write what they have to write. Have you ever seen a Chinese in here, which is criticizing the Chinese state?

    Let's tell everyone how wonderful China is.

    [​IMG]
     
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