The United States has prevented investment firm Merrill Lynch from acting as adviser to a major Turkish defense contractor as a rebuke to Turkey’s plans to buy missiles from a US blacklisted Chinese company.
This latest development comes only a day after the US prevented WestCAM Solutions, an American company from selling camera systems and laser pointers to Turkey for its newly developed unmanned aerial vehicle (UAV), the Karayel.
Merrill Lynch was among a number of firms approached by Aselsan to underwrite its second planning share offering.
The banking firm cited the decision as a reason in itself to deny Aselsan’s request to work with its second public offering, the Hurriyet daily reported.
“If it is possible that you will work with the Chinese company, CPMIEC, we would not work with you,” said Merrill Lynch in a letter sent to Aselsan.
So far, fifteen percent of Aselsan’s shares have been offered to the public, and the company has been in talks with several international consultancy firms ahead of its second public offering, including Merrill Lynch.
The details of Aselan’s public offering, with a market cap of $2 Billion, will be detailed with an international advisory and underwriting firm.
Merrill Lynch apparently prepared the letter in coordination with the US administration, after Washington expressed “serious concerns” over Turkey’s missile decision, the report said.
CPMIEC is under U.S. sanctions for violations of the Iran, North Korea and Syria Nonproliferation Act.
Turkey is meant to face difficulties in near future upon its continued decision to buy Chinese missiles, with U.S. examining the possible legal outcomes of Turkey’s deal with the sanctioned Chinese company, the report said.
Further, if the deal is penned down, the Chinese system would not be interoperable with NATO systems or collective defense capabilities.