On Wednesday, one of Türkiye’s most giant conglomerates, Koç Holding, and global carmaker Stellantis announced they had reached a deal to expand their joint venture Tofaş, including a change of the ownership structure of a local distribution unit.

Under a new strategic agreement, Tofaş will acquire all shares of Stellantis distribution company in Türkiye, Stellantis Otomotiv Pazarlama A.Ş., the partners said in a statement. The deal reportedly amounts to around 400 million euros ($425 million).

As a result, all Stellantis brands in the country – Alfa Romeo, Fiat, Citroen, DS Automobiles, Jeep, Maserati, Opel, and Peugeot – will be distributed by Tofaş, the statement noted.

Shares of Tofaş jumped as much as 9.8% on Wednesday to a record high of TL 194.

"To gather all the activities in Türkiye under one single entity ... will not only allow unprecedented synergies in commercial activities, production, and R&D globally but will also pave the way to offering broader and more efficient products and services," the statement said.

Tofaş is a carmaker owned by Koç Holding and Stellantis, which was formed in 2021 through the merger of France’s PSA and Fiat Chrysler.

Koç Holding CEO Levent Çakıroğlu said, "We are resolved to continue to play our part in healing the wounds of Türkiye’s Feb. 6 earthquake disaster as we try to recover from the pain caused by the event. As Koç Group, we are committed to investing in our country, believing the new agreement will help overcome this difficult period.

"This strategic investment, combined with Tofaş’s production volume, export performance, and R&D capabilities, is taking the company to new heights in the automotive industry," said Koç Holding CEO Levent Çakıroğlu.

"As the leading automotive company in Türkiye, Tofaş will further expand its goals and strengthen its credentials with this new investment," Çakıroğlu said. "We will continue to do our best to increase the competitiveness of Türkiye in the automotive industry through the added value that will be generated."

For his part, said Stellantis CEO Carlos Tavares said Türkiye "plays a critical role in Dare Forward 2030, our long-term strategic plan, as we push to achieve a leading market share in the Middle East and Africa."

"Deepening our partnership with Koç will create synergies, increase value, and grow the market potential for the array of Stellantis brands across all segments," Tavares noted.

Meanwhile, Stellantis said it would allocate production of a range of mid-size light commercial vehicles and cars, dubbed "K0," to Tofas across five brands that will start production in 2025.

The statement said that the Doblo van will continue until the start of work on the production lines of the "K0" model in July of this year.