(Bloomberg) -- Turkish authorities have held talks to potentially reverse their decision to block Stellantis NV’s sale of its local distribution business, according to people familiar with the matter.
The Turkish Competition Authority is reconsidering its ruling following talks between government officials and executives representing Tofas, the company that’s set to take over Stellantis car distribution business in the country, the people said, asking not to be identified discussing confidential information.
Tofas rose as much as 10% to 216.9 liras in Istanbul, the biggest jump in nearly three years. Koc Holding AS, which owns Tofas in an equal partnership with Stellantis, rose as much as 4%.
The Turkish Competition Board declined to comment. Stellantis was not immediately available for comment.
The antitrust ruling was “an interim” step and future developments in the approval process will be shared with public, Tofas said in emailed response to questions seeking comment.
Stellantis’s 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—dubbed the company’s “third engine” of profit growth after North America and Europe—is expected to remain unchanged as the group searches for a new leader.
Regulators rejected the deal that was valued at €400 million ($420 million) at the time, citing insufficient commitments by the two parties to address regulatory concerns. The ruling denied Tofas exclusive rights to import and distribute 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 their parts.
It wasn’t immediately clear if the two firms offered further guarantees to overcome the antitrust agency’s concerns. No final decisions have been made, the people said.
Stellantis and Tofas announced the agreement last year as part of a broader strategy to consolidate operations in Turkey, a key market for both companies. Tofas, which makes sedan and light commercial vehicles at a plant in Bursa province, is equally owned by Stellantis and Turkey’s biggest conglomerate Koc Holding AS.
That deal was also set to extend Tofas’s production of the Tipo/Egea passenger car through 2025 while granting it exclusive rights to manufacture and distribute Stellantis’s K0 light commercial vehicle, with production slated to begin in 2025.
--With assistance from Alberto Brambilla, Ercan Ersoy and Albertina Torsoli.
(Adds Tofas, Koc Holding share prices in third paragraph.)
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