European Commission approved under the EU Merger Regulation the proposed merger of the car companies Fiat Chrysler Automobiles NV (FCA) and Peugeot SA (PSA). The press service of the Commission added that the approval of the deal depends on full compliance with the package of obligations offered by the companies.
“We can approve the merger of Fiat Chrysler and Peugeot SA because their commitment will facilitate entry and expansion of small commercial vans,” said Executive Vice President Margrethe Vestager.
The European Commission launched an investigation into the merger in June out of concern that it would reduce competition in the van market. However, after providing a number of obligations from the automakers, it was decided to issue a permit for the merger of assets.
Fiat Chrysler Automobiles and PSA Group have set themselves the goal of settling all merger formalities by the end of January 2021. Both companies are in a hurry to reap the first € 6 billion in annual savings from the synergy of a single enterprise as soon as possible.
Fiat Chrysler and Peugeot deal will create the fourth largest automotive group in the world after Volkswagen Group, Toyota and Renault-Nissan alliance.
The group will have a stable group of strong brands, from RAM and Jeep to Peugeot, Citroen and Opel, but also worryingly lagging brands such as DS, Dodge, Alfa Romeo, Fiat, Lancia, Chrysler and Maserati.