Tofas Secures Approval for Stellantis Acquisition in Turkey
Deal News | Apr 21, 2025 | EIN
The Turkish Competition Authority has given the green light to Tofas Turk Otomobil Fabrikasi's acquisition of Stellantis NV's Turkish distribution business for a deal valued at $400 million. To gain approval from the regulator, Tofas has committed to investing 256 million euros in the production of a new Stellantis passenger car model, with an annual production target of 150,000 units. This strategic move also entails Tofas acquiring the distribution rights for Stellantis, Peugeot, Citroen, Opel, and DS Automobiles brands in Turkey, a vital market for both companies. As part of this agreement, Tofas plans to enhance its export production capacity to 200,000 to 220,000 units by 2027. Tofas, jointly owned by Stellantis and Turkey's Koc Holding AS, is the sole producer of passenger cars in the country. Stellantis NV, formed from the merger of Fiat Chrysler Automobiles and Groupe PSA, reported declining revenues and car sales in 2024.
Sectors
- Automobile Manufacturing
- Investment & M&A
Geography
- Turkey – The central focus of the article is on the Turkish operations of Stellantis being acquired by Tofas, a Turkish automotive company.
- Netherlands – Stellantis NV is headquartered in the Netherlands, and their activity as a multinational corporation is relevant to the acquisition's multinational nature.
Industry
- Automobile Manufacturing – The article involves companies that are engaged in the production and distribution of vehicles, which is central to the acquisition deal discussed.
- Investment & M&A – The activity covered in the article involves a significant acquisition and regulatory approval, key activities in mergers and acquisitions sectors.
Financials
- $400 million – Purchase price for Stellantis' Turkish distribution business by Tofas.
- 256 million euros – Investment commitment by Tofas in the production of a new Stellantis passenger car model.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Tofas Turk Otomobil Fabrikasi | The Buying Company | Company | Turkish manufacturer of passenger cars with joint ownership by Stellantis and Koc Holding AS, acquiring Stellantis' Turkish distribution business. |
| Stellantis NV | The Selling Company | Company | A Dutch multinational automobile manufacturing corporation selling their Turkish distribution business as part of a strategic realignment. |
| Turkey's Competition Authority | Government | Government | Regulatory body approving the acquisition of Stellantis' Turkish business by Tofas. |
| Koc Holding AS | Co-Owner of Tofas | Company | Turkey's largest conglomerate, co-owner of Tofas, involved in the acquisition deal indirectly. |