Turkish businessman acquires army vehicle maker BMC
Wednesday, May 21, 2014
ANKARA – Turkey´s competition authority on Wednesday approved the sale of Turkish military vehicle manufacturer, BMC to Turkish businessman Ethem Sancak.
The Turkish businessman offered 751 million Turkish lira (US$360 million) on April 25 to buy the Turkish vehicle manufacturer who make land-mine resistant vehicles as well as trucks and buses.
Sancak said that the company would cost him around two billion Turkish lira (US$948 million) because of the investment he claims will be needed to continue production.
He also said that if he buys the company, he would make a strong strategic partnership with a country from the Gulf – some Qatari businessman were present at Wednesday's auction.
The Turkish armed forces and BMC previously agreed on a deal to produce 468 of Turkey's first mine-resistant vehicle (Kirpi), but the company only met its commitment on 278 vehicles - which led to the company being fined.
Sancak initially offered 540 million Turkish lira but his company investment company ES Mali Yatirim increased the offer after negotiating with the auction commission. Sancak heads Turkish conglomerate, Hedef Holding.
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