6Pre-AdvancedBusinessBusiness

Borusan Holding Strengthens Control Over Steel Subsidiary

Borusan Holding has raised its ownership stake in BRSAN, its steel pipe subsidiary, to nearly 75%. This strategic consolidation signals renewed confidence in Turkey's industrial sector and may reshape the conglomerate's future investment priorities.

2 min readLevel 6April 16, 2026

By Flalingo Editorial Team

Vocabulary

Study these words before reading the article. Click the audio button to hear pronunciation.

conglomerate

/kənˈɡlɒmərət/

noun

A large corporation made up of several different companies operating in various industries

“The conglomerate expanded its operations into energy and automotive sectors.”

consolidation

/kənˌsɒlɪˈdeɪʃən/

noun

The process of combining or strengthening something, often by bringing separate parts together

“The consolidation of shares gave the parent company greater control over its subsidiary.”

subsidiary

/səbˈsɪdiəri/

noun

A company that is owned or controlled by a larger parent company

“The holding company sold its logistics subsidiary for a significant profit.”

stake

/steɪk/

noun

A share or financial interest in a business or investment

“The investor increased her stake in the technology firm to 30 percent.”

restructuring

/ˌriːˈstrʌktʃərɪŋ/

noun

The act of reorganizing a company's structure, finances, or operations to improve performance

“The portfolio restructuring allowed the firm to focus on its most profitable divisions.”

deliberate

/dɪˈlɪbərət/

adjective

Done on purpose and carefully planned, not accidental

“The board made a deliberate decision to invest heavily in renewable energy.”

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Article

Click on any underlined word to see its definition. Highlighted words are from the vocabulary section.

Borusan Holding, one of Turkey's most prominent conglomerates, has made a significant move. The company has increased its stake in BRSAN to 74.85%. BRSAN is a major steel pipe manufacturer listed on Borsa Istanbul. The shares were acquired from three individual shareholders. This consolidation demonstrates the holding company's commitment to its core industrial operations.

Borusan Group, which was founded in 1944, operates across multiple sectors. These include steel manufacturing, automotive distribution, logistics, and energy. The group generates approximately 4.3 billion dollars in annual turnover. Its subsidiary BRSAN, formerly known as Borusan Mannesmann, has been producing steel pipes since 1958. The company serves construction, energy, and automotive industries worldwide.

This acquisition had been anticipated by market analysts for some time. Had the holding company not consolidated its position, minority shareholders might have gained more influence. By raising its stake to nearly 75%, Borusan has strengthened its strategic decision-making authority. The move also reduces potential conflicts between majority and minority shareholders.

The stake increase comes after Borusan sold its logistics subsidiary to CEVA Logistics. That deal, which was valued at 440 million dollars, generated substantial capital. Analysts suggest these proceeds could have funded the recent share purchases. This portfolio restructuring indicates a deliberate shift toward Borusan's industrial and manufacturing strengths.

Comprehension Quiz

Test your understanding of the article with these multiple-choice questions.

1
What is Borusan Holding's new ownership percentage in BRSAN?
2
In which year was the Borusan Group originally founded?
3
What did Borusan sell to CEVA Logistics?
4
How much was the CEVA Logistics deal worth?
5
What does the article suggest the portfolio restructuring indicates?

Discussion

Answer these comprehension questions about the article.

1
What percentage of BRSAN does Borusan Holding now own after the recent acquisition?
2
How did Borusan Holding acquire the additional shares in its steel subsidiary?
3
Why might increasing ownership to nearly 75% strengthen decision-making authority?
4
What was the value of the logistics subsidiary sale to CEVA Logistics?
5
How does the article suggest the logistics sale and the stake increase are connected?

Further Discussion

Share your opinions on these open-ended questions.

1
If you were a minority shareholder in BRSAN, how would you feel about the majority owner increasing its stake?
2
Do you think it is a wise strategy for conglomerates to sell one division and reinvest in another? Why or why not?
3
What risks might Borusan face by concentrating more heavily on its steel and manufacturing operations?
4
In your opinion, what factors should a holding company consider before increasing its stake in a subsidiary?
5
How would you assess the return on investment of selling a logistics business to strengthen a steel business?