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Fiat Chrysler, PSA win EU approval for $38bn merger
21st Dec 2020 12:06
(Sharecast News) - Fiat Chrysler and PSA have received approval for their $38bn merger, the European Commission said on Monday.
The European Commission's go-ahead comes after both companies addressed the bloc's concerns and agreed to extend PSA's small van agreement with Toyota Motor by increasing capacity for Toyota and cutting transfer prices for the vehicles, parts and accessories.
Fiat and PSA will also allow rivals to access their repair and maintenance networks for vans to help new entrants expand in the market.
The combination of these commitments allow the maintenance of effective competition in the market after the transaction and therefore "fully addresses all of the Commission's competition concerns", said the EC in a statement on Monday.
"Access to a competitive market for small commercial vans is important for many self-employed and small and medium companies throughout Europe," said European Competition Commissioner Margrethe Vestager in a statement.
"We can approve the merger of Fiat Chrysler and Peugeot SA because their commitments will facilitate entry and expansion in the market for small commercial vans. In the other markets where the two automotive manufacturers are currently active, competition will remain vibrant after the merger."
Shareholders from both sides of the merger still need to meet on January 4 to approve the transaction and if the green light is given, the closing of the merger will take place by the end of the first quarter of next year.
The deal will create the world's fourth-biggest carmaker and help both companies tackle the industry's challenges of creating cleaner vehicles and the current global pandemic. The merged entity, to be called Stellantis, would own brands such as Fiat, Jeep, Alfa Romeo, Lancia, Dodge, Maserati, Peugeot, Opel and DS.
(Writing by Frank Prenesti. Editing by Michele Maatouk)
The European Commission's go-ahead comes after both companies addressed the bloc's concerns and agreed to extend PSA's small van agreement with Toyota Motor by increasing capacity for Toyota and cutting transfer prices for the vehicles, parts and accessories.
Fiat and PSA will also allow rivals to access their repair and maintenance networks for vans to help new entrants expand in the market.
The combination of these commitments allow the maintenance of effective competition in the market after the transaction and therefore "fully addresses all of the Commission's competition concerns", said the EC in a statement on Monday.
"Access to a competitive market for small commercial vans is important for many self-employed and small and medium companies throughout Europe," said European Competition Commissioner Margrethe Vestager in a statement.
"We can approve the merger of Fiat Chrysler and Peugeot SA because their commitments will facilitate entry and expansion in the market for small commercial vans. In the other markets where the two automotive manufacturers are currently active, competition will remain vibrant after the merger."
Shareholders from both sides of the merger still need to meet on January 4 to approve the transaction and if the green light is given, the closing of the merger will take place by the end of the first quarter of next year.
The deal will create the world's fourth-biggest carmaker and help both companies tackle the industry's challenges of creating cleaner vehicles and the current global pandemic. The merged entity, to be called Stellantis, would own brands such as Fiat, Jeep, Alfa Romeo, Lancia, Dodge, Maserati, Peugeot, Opel and DS.
(Writing by Frank Prenesti. Editing by Michele Maatouk)