Media Markt Istanbul has suspended plans to buy shares in Teknosa Iç ve Dis Ticaret A.S. (IBSE:TKNSA) (TKNS), two sources close to the matter said, after recent falls in the lira hit profits of Turkish firms. One source said MediaMarkt was reviewing its valuation of the TKNS stake following the lira's slide to record lows, which dampened demand for imported electronics and raised rental costs for stores, which are mainly priced in foreign currency. “MediaMarkt has suspended the plans due to recent foreign exchange volatility. It will review the valuation of Teknosa and decide later to go ahead with the acquisition or not”, the source said, adding a decision may not be reached until October 2018.

Another source confirmed the negotiations were stalled, but said they were not completely cancelled. MediamarktSaturn, which owns Media Markt declined to comment. Teknosa and parent Haci Ömer Sabanci Holding A.S. (IBSE:SAHOL) did not immediately respond to questions about the issue.

The sources did not specify the size of the stake MediaMarkt was seeking. The shares in Teknosa tumbled 17.6% to TRY 3.84 on the news, while the main share index was 0.58% lower.