Turkish Antitrust Authority Approves Tofaş Takeover of Stellantis Distribution Unit

Turkey’s antitrust watchdog has granted conditional approval for Tofaş’s acquisition of Stellantis NV’s local distribution operations, following a revised commitment package that includes promises of investment and support for domestic production.

According to Reuters, the Turkish Competition Board announced on Friday that it had accepted a second round of commitments from the companies, which addressed concerns initially raised earlier this year. The revised proposal includes an investment plan, assurances to safeguard local manufacturing, and detailed steps to enhance distribution and sales infrastructure.

Tofaş, a major automotive manufacturer in Turkey, reached an agreement in 2023 to purchase the entirety of Stellantis Otomotiv’s shares in the country. The deal covers the distribution rights for several major brands, including Peugeot, Citroën, Opel, and DS Automobiles, as reported by Reuters.

Per the board’s statement, Tofaş committed to boosting both production and export capacity, a move expected to significantly impact employment levels in Turkey. The regulator noted that these developments are anticipated to bring long-term benefits to the broader automotive sector.

The initial package of commitments submitted in 2024 was not deemed sufficient by the competition authority, prompting a request for stronger guarantees.

Source: Reuters