Turkey's mergers and acquisitions volume rose to $8.2 billion last year and the strong momentum is expected to continue, but discussions ‍about possible early elections ‍could pose risks for economic policy, KPMG Turkey said.

Speaking to reporters late on ​Wednesday, KPMG Turkey's M&A advisory partner Ozge Ilhan said improved confidence under current economic policies was reflected in ⁠M&A activity in 2025.

Ilhan said the biggest risk for the coming period was expectations regarding possible early ⁠elections, as ‌potential election-driven economic measures could undermine efforts to fight inflation.

According to the report, a gradual fall in inflation is expected to strengthen interest from international investors and KPMG ⁠recently held discussions with a Chinese investor group that is actively looking at Turkish companies, particularly those in industrial production, Ilhan also said.

The report said the disclosed M&A deal value in Turkey rose more than 50% in 2025 from the previous year to $8.2 billion, with the ⁠total volume reaching $18.5 billion including undisclosed ​transactions.

Investors are likely to continue looking into gaming, software, artificial intelligence, cyber-security, defence technologies and data analytics sectors following 23 transactions in ‍these areas last year.

The report also showed that M&A activity accelerated in 2025 across retail, energy, industrial production, automotive ​and the technology-media-telecom (TMT) sector.

KPMG is also advising on the potential sale of several companies under the Savings Deposit Insurance Fund (TMSF), said head of deal advisory Hande Senova, adding that they are working with fintech company Papara, currently managed by the TMSF.

Papara, a well-known fintech operator with around 21 million users, was transferred to the TMSF following an investigation into alleged illegal betting and money-laundering activities.

Responding to a question on the potential merger of Turkey's state-owned participation banks, KPMG Turkey President Chairman Murat Aslan said work was ongoing on the issue and that the firm was preparing for the ⁠process.

The largest deal was the acquisition of operating rights ‌for vehicle inspection stations for $1.7 billion by an international consortium of partners followed by BP's 3% stake sale in TANAP gas pipeline for $1 billion, according to the report.

Another major transaction was Uber's purchase ‌of an ⁠85% stake in Trendyol Go for $700 million, a significant deal in the TMT and delivery sectors.

(Reporting by Ebru ⁠Tuncay; Writing by Ezgi Erkoyun; Editing by Daren Butler and Louise Heavens)