Otokar is Expanding Its Partnership in Romania: Acquiring Automecanica

Otokar's Strategic Move: Acquisition of Automecanica

Otokar is taking an important step to expedite its processes in the 4x4 Tactical Wheeled Light Armored Vehicle Procurement tender conducted by the Romanian Ministry of National Defense. The company is continuing the production of vehicles valued at 857 million euros for an order of 1059 units in the tender launched by C.N. Romtehnica S.A.

Partnership Between Otokar and Automecanica

Otokar has signed a memorandum of agreement to acquire a 96.77% stake in Automecanica S.A to support the local production of 781 vehicles to be manufactured in Romania. This agreement will allow the production partnership to transition into ownership.

With pre-contract preparations, the value of the shares is estimated to be approximately 85 million euros, with the final amount to be determined after adjustments for net debt and operating capital.

Otokar's Turkey-Romania Cooperation

The transaction will be completed once detailed examinations of Automecanica yield positive results and necessary permissions are obtained. During this process, Otokar's subsidiary Otokar Land Systems SRL may also assume obligations. The transaction is expected to be completed by the end of April.

Romanian Industry and the Role of Automecanica

Automecanica has been operating in Romania since 1938 and currently possesses the necessary production infrastructure. The company has a broad portfolio in vehicle maintenance, repair, and manufacturing. With this partnership, Otokar aims to strengthen the local workforce while also meeting the local production requirements for COBRA II vehicles.

In conclusion, this collaboration aims to enhance the defense industry potential of both Otokar and Romania.