The acquisition of Turkey's cross-sea bridge and high-speed project may be terminated

On the evening of August 22, companies such as China Merchants Highway, Nanjing-Shanghai Expressway, Sichuan Chengyu Expressway, and Wantong Expressway successively issued announcements. The Chinese consortium (buyer) recently received an official letter from Turkey’s IC Holding Group (seller). The seller requested Both parties of the transaction jointly discussed the termination of the Turkish Three Bridge Project.

The statement pointed out that the parties to the Chinese consortium decided to accept the seller's proposal after comprehensive consideration. The two parties intend to initiate follow-up negotiations on the "termination agreement" and there is the possibility of terminating the transaction.

In December 2020, led by China Merchants Highway, China Merchants United (CMU), Zhejiang-Shanghai-Hangzhou Railway, Nanjing-Shanghai Expressway, Sichuan-Chengdu-Chongqing Expressway, Anhui Expressway and other places formed an investment consortium. Turkish IC Holding Group held the "Turkey Signing Ceremony for the “Istanbul Third Bridge” project.

The signing of the acquisition agreement is a combination of multiple domestic expressways, and is regarded as a major breakthrough for domestic expressway companies to go to sea in a group. According to this agreement, the Chinese consortium intends to purchase the third Bosphorus Bridge in Istanbul, Turkey, and the northern ring highway and 51% of the equity and shareholder loans of the transportation and nutrition protection company, and will obtain the controlling and operating rights of the project.

Istanbul is the economic center of Turkey, straddling Eurasia, and has nearly one-fifth of Turkey's population. This project is an important transportation infrastructure for Turkey. It straddles the Bosbros Strait and is close to Turkey's largest international airport. It is a land freight channel connecting Eurasia.

The Bosphorus Bridge is the third sea-crossing bridge in Istanbul. The bridge is 1.4 kilometers long and 59 meters wide, with 8 lanes and 2 railway lines. It is one of the largest suspension bridges in the world.

The total mileage of the project is 157.12 kilometers, which was completed and put into use on August 26, 2016. According to negotiations at the time, the consortium originally planned to set up an acquisition company in Hong Kong, S.A.R., China, of which China Merchants Highway holds 31%, China Merchants Jointly holds 20%, and China Merchants Jointly holds 20%.

China Merchants Bank announced that the seller's proposal to terminate the transaction is mainly because the relevant parties have not reached a consensus on the relevant terms of the refinancing agreement, and it is also affected by uncontrollable factors such as the new crown epidemic.

The current project has not been completed, and the Chinese consortium has not paid the other party, nor has it actually obtained the property rights and operating rights of the Turkish Three Bridges project. The statement said that if the acquisition is finally terminated, it will not have a significant impact on the normal operation of the Chinese company.