Approval from the Competition Authority for Tofaş's acquisition of Stellantis.

Approval from the Competition Authority for Tofaş's acquisition of Stellantis.

19.04.2025 00:51

The Competition Authority has approved Stellantis' acquisition by Tofaş within the framework of investment and distribution commitments.

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The Competition Authority approved Stellantis' acquisition by Tofaş within the scope of investment and distribution commitments.



The Competition Authority accepted the second commitment package presented by the parties and approved the acquisition of Stellantis Automotive Marketing Inc., owned by Stellantis N.V., by TOFAŞ Turkish Automobile Inc. with a historic decision.



HISTORIC DECISION FROM THE COMPETITION AUTHORITY



Conditioning the permission on the parties' investment obligations constitutes a first in terms of the institution's history. This decision is expected to make a significant contribution to international case law and literature, as it indicates that the criteria for social welfare, which is generally based on static price and output analysis, should be addressed with a broader understanding that takes into account the dynamic effects of competition.



CONTRIBUTION TO EMPLOYMENT IS EXPECTED



The investment plan, in which Tofaş committed to increasing its production and export capacity, is also aimed at making a significant contribution to employment. It is anticipated that the investment plan will positively reflect not only on the main automotive industry but also on the sub-industry. The contributions of the transaction, along with the commitments made, to the Turkish economy and the increase in social welfare formed the main rationale for the Authority's permission decision.



In addition to the investment plan, the parties presented commitments regarding certain measures in the distribution and sales channel. The measures aimed at eliminating the potential to restrict consumer preferences and the distribution/sales activities of competing brands played a significant role in the granting of the permission decision. Thus, it was aimed to prevent the risk of the parties' dealers becoming a "one-stop-shop."



REJECTED IN 2024



The first commitment package presented by the parties in October 2024 was deemed insufficient and rejected by the Competition Authority.



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