According to informed sources, Turkish authorities have held talks and may approve Stellantis (STLA.US) to sell its local distribution business.

Reports indicate that the Turkish Competition Authority is reconsidering its ruling, following discussions between government officials and company executives of Tofas. The Turkish auto manufacturer Tofas intends to acquire Stellantis's auto distribution business in Turkey.

In response to the above news, Tofas's stock price in Istanbul rose by 10% to 216.9 lira, marking the largest increase in nearly three years.

Tofas responded that the antitrust ruling is a 'temporary' measure, and the progress of future approval processes will be shared with the public.

Entering low-cost countries like Turkey is a key part of the global strategy of Stellantis's former CEO Carlos Tavares, who resigned on Sunday. As Stellantis searches for new leadership, attention on rapidly growing emerging markets is expected to remain unchanged. Emerging markets are referred to as the 'third engine' of profit growth for Stellantis, after North America and Europe.

Turkish regulators rejected a transaction that was valued at 0.4 billion euros (0.42 billion dollars) at the time, citing that both parties had not made sufficient commitments to address regulatory concerns. This ruling negated Tofas's exclusive rights to import and distribute Stellantis brands such as Peugeot, Citroën, Opel, and DS automobiles in Turkey.

It is currently unclear whether these two companies have provided further guarantees to alleviate the concerns of antitrust institutions. Informed sources indicate that Turkey has not made a final decision.

Stellantis and Tofas announced this agreement last year as part of a broader global strategy to integrate their Turkish business. Turkey is a key market for both companies. Tofas manufactures sedans and light commercial vehicles at a factory in Bursa province, with half ownership held by Stellantis and Turkey's largest conglomerate, Koc Holding AS.

The agreement also extends Tofas's production period for the Tipo/Egea passenger vehicle until 2025 and grants Tofas exclusive rights to manufacture and distribute Stellantis's K0 light commercial vehicle, which is planned to begin production in 2025.