The Turkish company Otokar announced that it is consolidating its presence in Romania and signed a memorandum of understanding (MoU) for the acquisition of 96.77% of the share capital of Automecanica, a Romanian manufacturer with a long tradition in the defence industry, according to Economedia.ro. Otokar previously set up a 50:50 joint venture with Automecanica (SAROM) to produce Cobra II armoured vehicles, and the deal announced on January 28 means the Turkish company would take over the entire business.

"It is intended that the activities planned within the tender for 4×4 armoured vehicles will be carried out directly through Automecanica," the representatives of the Turkish group stated.

The acquisition is valued at an enterprise value of approximately EUR 87.8 million, with the price corresponding to the majority stake being estimated at EUR 85 million. The final amount will be adjusted upon closing, depending on net debt and working capital.

Automecanica owns some 80% of the halls of former State Workshops for Aeronautics Mediaș (ASAM) set up in 1941, registered as Automecanica after the fall of communism and privatised in 1997. The remaining 20% were taken over in 2024 by Rheinmetall and operate as Rheinmetall Automecanica, where the German company wants to produce Lynx infantry fighting vehicles.

The Turkish company's strategic move comes as a result of Otokar winning the tender for 4×4 light armoured tactical vehicles for the Ministry of National Defence. The contract is for 1,059 vehicles, out of which almost 200 were already delivered from Turkey, and has a value of EUR 857 million (VAT excluded).

Completion of the takeover is estimated for the end of April 2026, the process being conditioned by successful completion of the audit process (due diligence); signing the final share purchase agreement, and obtaining the necessary authorisations from the Competition Council and the national defence authorities (CSAT).

Automecanica, the company to be purchased by Otokar, should not be confused with the former Automecanica Mediaș, purchased in 2024 by the German company Rheinmetall, currently registered as Rheinmetall Automecanica. Both companies are located in Mediaș, central Romania.

Automecanica (originally Automecanica Mediaș) is the Romanian company responsible for the local production of the Cobra II armoured vehicles, under the umbrella of the SAROM 50:50 partnership formed in 2025 with Turkish Otokar, Defense Romania explained. It is also the company that manages the Mediaș Industrial Park, which covers 63,000 square meters of halls.

The partnership project between Otokar and Automecanica is located on an area of ​​35,000 square meters of halls and an overwhelming part of the industrial platform. Here, Otokar transferred technology, from know-how to machinery, to start the production of 4x4 Cobra II armoured vehicles. 

At the same time, in February 2024, the German Rheinmetall Group took over the remaining part of the Mediaș factory, through its subsidiary Rheinmetall Landsysteme GmbH, giving birth to Rheinmetall Automecanica. Rheinmetall owns 17,000 square meters of halls.

iulian@romania-insider.com

(Photo source: Calinescu Silviu/Dreamstime.com)