Türkiye approves Tofas-Stellantis deal with historic investment conditions

Türkiye’s Competition Authority announced Friday it has approved the acquisition of Stellantis N.V.’s local distribution business by Turkish carmaker Tofas, marking a historic first in which approval was granted on the condition of an investment plan and additional commitments.

In a statement, the Competition Authority said it accepted a second package of commitments from the parties involved, which included a robust investment plan, the protection of domestic production, and safeguards for distribution and sales channels.

It is the first time in the authority’s history that a merger approval was conditioned on the submission of an investment commitment.

The investment plan submitted by Koc Holding affiliate Tofas includes initiatives to expand production and export capacity. The plan is also expected to significantly boost employment and positively impact both the automotive manufacturing and supplier industries. The Board stated that the expected contributions to Türkiye’s economy and social welfare were the primary justifications for its authorization.

With the acquisition, Tofas will now distribute Citroen, DS Automobiles, Opel, and Peugeot brands in addition to Alfa Romeo, FIAT, Jeep, and Maserati, which it already handles in Türkiye.

$292M of investment expected

On the production side, Tofas will launch a new light vehicle project built on a multi-energy platform. Scheduled to begin in the third quarter of 2026, the project represents a €256 million ($292M) investment and will include exports to countries in the Middle East and Africa (MEA). The project is expected to have an annual production capacity of 150,000 vehicles, including disassembled vehicles for export. The formal contract is expected to be signed soon.

Koc Holding and Tofas issued the first official statement following the Competition Board’s approval.

Haydar Yenigun, president of Koc Holding Automotive Group, said the company considers the automotive sector to be of strategic importance and will continue investing accordingly.

“Following the completion of this transaction, we are realizing two important breakthroughs that reflect the confidence of our Group and our partner Stellantis in our country,” Yenigun said. “These strong steps symbolize a new era in our cooperation with Stellantis. Tofas will continue to expand the value it creates for our national economy, the automotive sector, and all our stakeholders.”

Türkiye to play crucial role

Samir Cherfan, chief operating officer of Stellantis MEA, also welcomed the deal.

“Türkiye will play a crucial role in achieving Stellantis’ leadership goals in the Middle East and Africa,” Cherfan said. “We are excited to enter a new era in our long-standing, trusted partnership with Koc Holding. I am confident that our new organization, uniting all our brands, will deliver the best products and services to customers in Türkiye.”

Tofas CEO Cengiz Eroldu said the approval will strengthen the company’s market position and enhance its offering.

“We believe the Competition Board’s approval will positively impact our cooperation, our country, the industry, our employees, and our customers,” Eroldu said. “With the completion of the transaction, we will provide more comprehensive services, a wider product range, and greater value. This move will open up new and exciting opportunities.”

In addition to the investment plan, the companies committed to implementing specific measures within distribution and sales operations. These commitments aim to prevent consumer choice restrictions and ensure competing brands can operate freely, addressing concerns that the deal could create a “one-stop-shop” model that limits dealer options.

During its final assessment phase, the Board consulted numerous competitors and third parties. Their feedback was evaluated in detail as part of the review process.

The first commitment package, submitted in October 2024, was rejected by the Board as insufficient.

Tofas initially announced in 2023 that it had reached an agreement to acquire all shares and operations of Stellantis Otomotiv, including distribution rights for Stellantis brands—Peugeot, Citroen, Opel, and DS Automobiles—in Türkiye.

“Tofas committed to increase its production and export capacity as part of the investment plan, which is expected to make a significant contribution to employment,” the authority stated, noting the broader benefits to the automotive sector.