Turkish Competition Authority ("TCA") approved the Tofaş/Stellantis acquisition by accepting and making binding the second package of commitments submitted by the parties regarding (i) Tofaş's investment plan to increase its production and export capacity and (ii) measures for the distribution/sales channel to eliminate the potential to restrict consumer preferences and the activities of competing brands. With the commitments regarding the distribution and sales channel, it is aimed to prevent the risk of the dealers of the transaction parties becoming one-stop-shops, and with the investment plan, it is aimed to protect domestic production and contribute to economic welfare.
TCA approved the transaction on the grounds that the commitments would contribute to the Turkish economy and increase social welfare. In this context, it is stated that the decision is expected to contribute to international jurisprudence and literature as it shows that the social welfare criterion, which is generally based on a static price/output analysis, should be considered with a broader understanding that considers the dynamic effects of competition. TCA's decision is significant as it is the first M&A approval decision to be subject to an investment.
(TCA decision – 18.04.2025)
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