Otokar manufactures buses and light trucks in the commercial vehicle segment, as well as a variety of wheeled and tracked tactical armored vehicles and turret systems for the defense industry.
According to data provided by the parties, Automecanica S.A. carries out commercial and manufacturing activities, operating in partnership or association with leading European automotive brands.
“In accordance with the provisions of Competition Law no. 21/1996, this transaction must be authorized by the Competition Council, which will assess it in order to establish its compatibility with a normal competitive environment and will issue a decision within the legal deadlines,” the Competition Council has announced.
The two companies are involved in the RON4.26 billion contract for the supply of over 1,000 Cobra II armored vehicles to the Romanian Army. The contract was awarded to Otokar, but one of the conditions set by Romtehnica (the national company through which the Romanian Ministry of Defense carried out the acquisition) at the auction was that most of the armored vehicles be manufactured on an industrial platform in Romania. This led to the Otokar partnership with Automecanica SA.
Currently, Otokar plans to acquire over 96% of Automecanica SA shares, while the Ministry of Defense demands compensation from the Turkish company for delays in the “local production process”.