Turkish authorities are negotiating to try to reverse the decision to block the sale of Stellantis’ local business, according to people familiar with the matter.
Turkey’s Competition Authority is reconsidering its decision following talks between government officials and executives representing Tofas, the company expected to take over Stellantis’ car distribution business in the country, the people said, asking not to be identified discussing confidential information.
Tofas shares rose as much as 10% to 216.9 lira in Istanbul, the biggest jump in almost three years. Koc Holding, which owns Tofas in an equal partnership with Stellantis, rose as much as 4%.
The antitrust ruling was an “interim” step and future developments in the approval process will be shared with the public, Tofas said in an email response to questions seeking comment.
READ MORE: Premature departure of CEO deepens crisis at Stellantis, owner of Fiat and Jeep
Stellantis’ push into lower-cost countries like Turkey was a key part of its strategy under former CEO Carlos Tavares, who stepped down on Sunday. The focus on fast-growing emerging markets – called the company’s “third engine” of earnings growth after North America and Europe – is expected to remain unchanged as the group searches for a new leader.
Regulators rejected the deal, which was valued at 400 million euros ($420 million) at the time, citing insufficient commitments from both parties to address regulatory concerns. The decision denied Tofas exclusive import and distribution rights for Stellantis brands such as Peugeot, Citroen, Opel and DS Automobiles in Turkey. Tofas Turk Otomobil Fabrikasi AS, as the company is officially known, also manufactures Fiat cars and parts.
It was not immediately clear whether the two companies offered other guarantees to overcome the antitrust body’s concerns. No final decision has been made, the people said.
READ MORE: CEOs are ‘taking a U-turn’ on government-imposed industrial policy
Stellantis and Tofas announced the deal last year as part of a broader strategy to consolidate operations in Türkiye, an important market for both companies. Tofas, which makes sedans and light commercial vehicles at a factory in Bursa province, is owned equally by Stellantis and Turkey’s biggest conglomerate, Koc Holding AS.
That deal was also set to extend Tofas’ production of the Tipo/Egea passenger car until 2025, while also giving it exclusive rights to manufacture and distribute Stellantis’ K0 light commercial vehicle, with production expected to begin in 2025.
