TOFAŞ and Stellantis' Takeover Process: Competition Authority's Historical Decision
The Competition Authority has signed an important development in the Turkish automotive sector by approving TOFAŞ Türk Otomobil A.Ş.’s takeover of Stellantis NV’s Stellantis Otomotiv Pazarlama A.Ş. This approval was achieved with the acceptance of the second commitment package submitted by the parties and was recorded as a historical decision affecting Türkiye’s economic dynamics.
The Importance of Commitments and Firsts
This approval by the board represents a first in the institution's history, as it is tied to the parties' condition of making an investment. This situation is considered a major step in terms of expanding the understanding of competition, considering not only the automotive sector in Türkiye but also the dynamic effects of international competition. In making this decision, the board adopted a broader perspective, going beyond the social welfare criteria based on price and output analysis.
Details of the Investment Plan
The parties prepared an investment plan together with the commitments they submitted. This investment plan, To increase TOFAŞ's production and export capacity It is expected to make significant contributions, especially in protecting domestic production and increasing employment. It is anticipated that the investments will have a positive impact on the automotive main industry as well as the sub-industry. In this context, it was assessed that the commitments made by the parties will contribute to the Turkish economy and the increase in social welfare.
Measures Taken in the Distribution and Sales Channel
TOFAŞ and Stellantis, not only limited to the investment plan, also presented commitments for some measures in distribution and sales channels. These measures demonstrate an approach aimed at eliminating the potential to restrict consumer preferences and distribution/sales activities of rival brands. Thus, it is aimed to prevent the risk of dealers belonging to the transaction parties becoming a “one-stop-shop”.
Competition Board's Review Process
The Board received the opinions of numerous competitors and third parties during the final review phase. These opinions were taken into consideration and evaluated in the Board's detailed study of the transaction. The first commitment package submitted by the parties in October 2024 was rejected by the Competition Board as insufficient. This situation revealed the need for the parties to submit a more comprehensive commitment.
Contribution to International Jurisprudence and Literature
This decision of the Competition Authority will also make significant contributions to international jurisprudence and literature. Because, instead of social welfare criteria based on price and output analysis, which are generally considered static, adopting a dynamic competition approach will increase Türkiye's competitiveness level. This situation creates a great opportunity not only for the automotive sector but also for the Turkish economy in general.
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The approval of the takeover process of TOFAŞ and Stellantis is considered a significant turning point in the Turkish automotive sector. The commitments and investment plans presented by the parties will increase competition in the sector and make positive contributions to Türkiye's economic structure. These developments will help Türkiye gain a stronger position in the international arena.
