Romania: Schoenherr advises Otokar on acquisition of Romanian defence company Automecanica

The Schoenherr team provided buy-side legal advice throughout all phases of this transaction, to signing. The transaction is subject to approvals from the competition authority and foreign direct investment screening in Romania. The firm's corporate/M&A, defence, competition, EU and foreign trade, real estate and employment lawyers worked together with its tax advisors in delivering this project.

"Romania continues to attract interest from defence sector investors. Otokar's acquisition of Automecanica marks a notable step in reinforcing that trajectory, in line with the regional M&A landscape," said Mădălina Neagu (Partner), who led the Schoenherr team advising on this transaction.

"Having advised Otokar during its successful participation in Romania's light armoured vehicle procurement process, we are proud to be continuing this journey together as they develop and enhance local manufacturing capabilities," said Iustin Armașu (Partner), who co-heads the firm's defence practice.

Otokar Otomotiv ve Savunma Sanayi AŞ is a Turkish company specialising in the production of commercial vehicles and military equipment. Otokar won a tender for the supply of 4x4 tactical wheeled light armoured vehicles to the Romanian Ministry of National Defence.

Automecanica is a defence industry company with production facilities in Medias, Romania.

The Schoenherr team advising Otokar was led by Mădălina Neagu (Partner) and Iustin Armașu (Partner) and included Cristina Răchileanu (Senior Attorney at Law), Mihaela Popescu (Managing Attorney at Law), Alina Cristea (Senior Attorney at Law), Andrea Gal (Managing Attorney at Law) and Iulia Giurgea (Attorney at Law). Merger clearance and foreign investments (FDI) screening were coordinated by Georgiana Bădescu (Partner), who worked together with Cristiana Manea (Managing Attorney at Law) in this matter. Real Estate matters were coordinated by Sebastian Guțiu (Office Managing Partner), seconded by Claudiu Stan (Managing Attorney at Law) and George Șopîrlă (Attorney at Law). Employment law aspects were coordinated by Mara Moga-Paler (Partner) who worked together with Giulia Tabacaru-Nazarie (Attorney at Law) on the matter. The firm's tax advisory team led by Adriana Stoian (Head of Tax) handled the tax law aspects of the transaction.