ICR Economic Research provided economic analyses and expert opinions to support the notifying parties and their legal representatives in the DP World Yarımca and Evyap Port merger. The transaction involved the acquisition of a controlling interest in Evyap Deniz İşletmeciliği Lojistik ve İnşaat Anonim Şirketi by DP World FZE. The Turkish Competition Authority’s (TCA) decision, dated November 23, 2023 (decision no. 23-54/1075-379), was made public on the TCA’s website.
Previous mergers in the port terminal sector
The merger between DP World Yarımca and Evyap Port, both container ports located in very close proximity within the Eastern Marmara sub-region, holds significant importance when considering the TCA’s previous decisions in the port terminals sector. Noteworthy cases include:
- Marport/TIL merger, which was blocked (Decision no. 20-37/523-231, August 13, 2020),
- Mardaş/Marport merger, which the parties did not complete, even though the transaction was conditionally approved with commitments (Decision no. 18-14/267-129, May 8, 2018), and
- UN Ro-Ro/Ulusoy merger, which was also blocked (Decision no. 17-36/595-259, November 9, 2017).
In these cases, the TCA’s case handlers and the Board emphasised the relevant geographic market rather than focusing solely on the product market. Given these precedents, a similar approach was expected in the DP World/Evyap Port merger. Therefore, the legal representatives were required to support their notification with a robust economic analysis addressing these geographic market concerns.
ICR Economic Research’s Contribution
ICR Economic Research supported the parties involved in the DP World Yarımca and Evyap Port merger by providing detailed economic analyses. Given the proximity of the two container terminals in the Eastern Marmara region, the analysis focused on defining the relevant geographic market. The study included calculations of transportation costs, including road and rail, and assessed the potential impact of a price increase by the merging parties on container flow to competitor ports. Additionally, a competitive effects analysis was conducted, which covered market shares, Herfindahl-Hirschman Index (HHI) calculations, and possible unilateral and coordinated effects of the transaction. Based on these findings and the results of other analyses conducted by the case handlers, the transaction was approved with commitments in a remarkably short period of 93 days.
Project Team
ICR Economic Research, led by Ali Ilıcak and Dr. Murat Çetinkaya worked closely with the legal team from Paksoy Law Firm, including attorneys M. Togan Turan, Kansu Aydoğan Yeşilaltay, Selen Toma, Oğulcan Halebak, and Ece Bezmez, who represented DP World in this transaction.
