Stellantis and Tofas Turkish Distribution Deal

In a recent development, Stellantis NV (NYSE:STLA) is looking to revive the sale of its Turkish distribution operations to Tofas Turk Otomobil Fabrikasi AS after an initial rejection by the Turkish Competition Authority in October. According to a report from Bloomberg News, sources familiar with the situation indicate that the Turkish Competition Authority is re-evaluating its decision following talks with government officials and Tofas representatives. However, the Competition Board has yet to comment, and Stellantis has not responded.

Tofas aims to take over the distribution of Stellantis vehicles in Turkey and labeled the previous antitrust ruling as an interim measure. They have promised to update the public regarding the approval process. The transaction, previously valued at €400 million, was blocked by regulators due to insufficient measures by Stellantis and Tofas to mitigate competition concerns.

If the deal goes through, Tofas would obtain exclusive import and distribution rights for Stellantis brands, including Peugeot (OTC:PUGOY), Citroen, Opel, and DS Automobiles. Tofas, known as Tofas Turk Otomobil Fabrikasi AS, also manufactures Fiat (BIT:STLAM) vehicles and components.

Additionally, on Sunday, Stellantis CEO Carlos Tavares resigned amid declining sales and stock prices.

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