Turkish Firm Otokar Expands into Europe with Romanian Acquisition
In a strategic move to bolster its presence in Europe, Turkish armored vehicle manufacturer Otokar Otomotiv announced plans to acquire a significant share in Romania’s Automecanica. This development was revealed through a memorandum of understanding filed on the Public Disclosure Platform (KAP) this week.
The agreement outlines Otokar’s intention to purchase 96.77% of Automecanica’s shares. Automecanica is a prominent Romanian defense company known for its production capabilities and licenses. The parties aim to finalize the share purchase agreement by April 2026, contingent upon customary conditions like due diligence and regulatory approvals in Romania.
Otokar has secured a substantial contract to deliver Cobra II 4×4 armored vehicles, valued at around €857 million ($1 billion). This involves the production of 1,059 vehicles, with a significant portion constructed in Romania through a joint venture with Automecanica, established in 2025.
To facilitate the assembly of 800 vehicles in Romania, Otokar has set up a wholly owned subsidiary, Otokar Land Systems SRL. This subsidiary will spearhead the acquisition, beginning with an initial payment of €5 million upon signing the MoU, with the remaining amount due at the transaction’s closure. The enterprise valuation for the share purchase is estimated at approximately €87.8 million, translating to about €85 million for the targeted 96.77% stake.
Automecanica possesses the facilities and approvals necessary to support Otokar’s industrial endeavors, particularly concerning its Romanian armored vehicle initiative. According to KAP, the direct transfer of shares to Otokar is anticipated to streamline the execution of the Romania 4×4 tactical wheeled light armored vehicle project. This would allow operations to occur directly through Automecanica, enhancing efficiency and local oversight.
This announcement follows a prior disclosure by Otokar on January 16, where it was revealed that Romtehnica has lodged compensation claims amounting to approximately 191.85 million Romanian lei (around $45 million). The claims suggest that Otokar did not meet interim milestones for the local production of Cobra II 4×4 vehicles in Romania.
Otokar has lodged a lawsuit to contest the compensation claims while also agreeing to pay the amount when required, without waiving its legal rights. The company has not commented on whether this legal issue is related to the acquisition of Automecanica.
