Fiat Chrysler and French rival PSA have got EU antitrust approval on Monday for their $38 billion merger for creating the world’s No.4 automaker.
The two carmakers are looking to the deal to help them deal with the industry’s dual challenges of funding cleaner vehicles and the global coronavirus crisis.
The European Commission said PSA will extend its small van agreement with Toyota Motor by boosting capacity for Toyota and slashing transfer prices for the vehicles, spare parts, and accessories to address EU competition concerns, confirming a Reuters story in October.
“Access to a competitive market for small commercial vans is important for many self-employed and small and medium companies across Europe,” European Competition Commissioner Margrethe Vestager said in a statement.
Fiat and PSA will also permit competitors to access their repair and maintenance networks for vans to help new entrants expand in the market, according to the EU competition enforcer.
The merged entity to be called Stellantis would own brands including Fiat, Jeep, Dodge, Ram, Maserati, Peugeot, Opel and DS.
“FCA and Groupe PSA warmly welcome the European Commission’s clearance authorizing the merger and the creation of Stellantis, a world leader in new mobility,” the companies said, adding that the shareholders of both companies will meet independently on January 4 to approve the transaction.
“The closing of the merger is expected to occur by the end of the first quarter of 2021”.
FCA’s controlling shareholder is Exor, the holding company of Italy’s Agnelli family while PSA’s investors are the Peugeot family, the French government and China’s Dongfeng.