Turkey to allow Qatar Armed Forces to acquire share worth of $72 million in the BMC Company 0306143

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Defence & Security News - Qatar

 
 
Tuesday, June 3, 2014 08:45 AM
 
Turkey to allow Qatar Armed Forces to acquire share worth of $72 million in the BMC Company.
Turkey's ES Mali Yatirim, owner of anti-landmine vehicle manufacturer BMC, asked the competition authority for permission to have Qatar army's industry committee on its board to help with BMC's recovery. Turkish investment company, ES Mali Yatirim, sought permission to have Qatar’s army invest in the company in order to resume production in its recently acquired military vehicle manufacturer.
     
Turkey's ES Mali Yatirim, owner of anti-landmine vehicle manufacturer BMC, asked the competition authority for permission to have Qatar army's industry committee on its board to help with BMC's recovery. Turkish investment company, ES Mali Yatirim, sought permission to have Qatar’s army invest in the company in order to resume production in its recently acquired military vehicle manufacturer.
Kirpi MRAP of BMC Company at Eurosatory 2010, Defense Exhibition in Paris, France.
     

According to Turkey's competition authority, ES Mali Yatirim asked the authority on Monday to allow Qatar Armed Forces Industry Committee to acquire shares worth 150 million Turkish liras (US$72 million) in the company.

On May 21, the competition body approved the sale of Turkish army vehicles manufacturer, BMC, to ES Mali Yatirim, owned by businessman Ethem Sancak. The BMC Company was one of the largest commercial vehicle manufacturers in Turkey. Its products include buses, trucks, and military vehicles.

In 2009, the Company has won a contract for the delivery of 468 Kirpi MRAP for the Turkish Army. BMC was seized in May due to financial obligations its parent company, Cukurova Holding, failed to fulfill. The group’s debts amounted to $455 million.

Sancak offered 751 million Turkish liras ($360 million) on April 25 to buy the manufacturer which makes mine-resistant vehicles as well as trucks and buses.

He said that the company would cost him around two billion Turkish liras (US$948 million) because of the investment that 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 businessmen were present at the auction.

BMC was fined last year after failing to meet the requirements of a deal with the Turkish army to deliver 468 anti-landmine Kirpi vehicles, the first such domestically manufactured vehicle. The company stopped production after making 278 Kirpis due to financial difficulties.

 

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