Koç Holding subsidiary Otokar has completed the acquisition of a controlling stake in Romanian defense contractor Automecanica S.A., giving the Turkish vehicle manufacturer a direct production base inside the European Union and NATO defense ecosystem.
In a disclosure to the İstanbul stock exchange, Otokar announced that it had acquired 96.77 percent of Automecanica’s shares. The Romanian company has now become a subsidiary of Otokar.
Automecanica is a long-established Romanian defense manufacturer with production facilities, technical infrastructure and the necessary licenses for military vehicle work. For Otokar, the acquisition is not simply a financial investment; it is a strategic move that allows the company to manufacture military vehicles inside an EU and NATO member state.
According to Otokar’s filing with Turkey’s Public Disclosure Platform, all closing conditions under the share purchase agreement signed on April 29 had been completed and the share transfer had taken place.
The company said it had already paid 10 million euros to the sellers during the memorandum of understanding and share purchase agreement phases. Following calculations based on Automecanica’s net debt and working capital figures as of December 31, 2025, Otokar made an additional payment of 46.7 million euros.
A further 25 million euros will be kept as cash collateral and paid in installments over three years, unless the sellers provide a bank guarantee allowing the amount to be released earlier. The final purchase price will be determined after a closing adjustment based on Automecanica’s net debt and working capital position as of May 31, 2026.
The acquisition is especially significant because local production has become increasingly important in defense procurement. Many governments now prefer, or require, that part of the military equipment they purchase be produced domestically. By acquiring Automecanica, Otokar gains the ability to meet such local production expectations in Romania and potentially in other European markets.
The deal is expected to support Otokar’s role in Romania’s 4×4 tactical wheeled light armored vehicle project, which involves the company’s Cobra II armored vehicles. The Cobra II is designed to transport troops and provide protection against gunfire, mines, improvised explosive devices and other battlefield threats.
For Romania, the acquisition may contribute to domestic defense production capacity, industrial cooperation and technology transfer. For Otokar, it provides a stronger foothold in the European defense market at a time when EU and NATO countries are sharply increasing military spending in response to Russia’s full-scale invasion of Ukraine.
The move also reflects the growing internationalization of Turkey’s defense industry. Turkish defense companies are no longer only exporting products from Turkey; they are increasingly seeking local partnerships, acquisitions and production bases abroad.
Koç Holding, one of Turkey’s largest business groups, has long been active in sectors such as energy, finance, durable goods, automotive production and defense. Through Otokar, the group is now deepening its presence in the European defense industry.
The acquisition of Automecanica therefore marks a major step for both Otokar and Turkey’s defense sector. It gives Otokar a production platform inside the EU, strengthens its position in NATO-linked procurement projects and expands Turkey’s defense-industrial footprint beyond its national borders.
