Mar 30 2018

German energy company calling it quits in Turkey

A German natural gas provider has joined the string of foreign companies ending their operations in Turkey.

Ewe AG, one of the largest energy companies in Germany,  has announced that it will sell its shares in Bursagaz and Kayserigaz, two local natural gas companies.

The company has reached an agreement with Barclay’s to serve as the consultant in meeting with potential investors to sell its Turkish assets, Bloomberg has reported, based five different sources.

Bloomberg notes that the German company initiated a series of meetings at the start of March and has so far met with Aygaz Inc., Kolin Group, and Aksa Doğazgaz Inc.

EWE AG, maintains an 80 percent share in natural gas distributors Bursagaz and Kayserigaz. EWE AG is also a partner with Çalık Energy Inc., which holds 10 percent of Bursagaz and Kayserigaz shares. Remaining shares in the two companies are held by municipalities.

While EWE AG, Aksa Doğalgaz, Aygaz, Barclays ve Kolin refrained from commenting on the EWE’s decision to pull out of Turkey, according to a Reuters report dated Feb. 22, EWE has hired Goldman Sachs as a consultant to sell 26 percent of shares of its main company in Germany.

The German energy company joins other foreign brands that have shut down their operations in Turkey. In 2015, Canadian lingerie company La  Senza announced it would be pulling out of Turkey, followed by British clothing brand Top Shop in 2016; Dutch clothing brand C&A in June of 2016 and German cosmetics chain Douglas in August of 2016.

U.S. furniture retailers Crate and Barrel announced last week that it will be withdrawing from the Turkish market.

Crate and Barrel's departure made it the latest international brand to leave Turkey, as concerns over political developments undermine confidence in the economy.