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21 December 2020 EU Commission free to merge Fiat-Chrysler and Peugeot.

The ok is subject to compliance with the conditions offered by the companies.

This was announced by the EU Commission. 



"Access to a competitive market for small commercial vans is important for many self-employed and SMEs across Europe. We can approve the merger of Fiat Chrysler and Peugeot Sa because their commitments will facilitate entry and expansion into the car market. small commercial vans. In the other markets in which the two car manufacturers are currently active, competition will remain strong after the merger, "said competition commissioner Margrethe Vestager.



FCA and Groupe PSA welcome "with great favor" the authorization of the European Commission for the merger and creation of Stellantis.

And, in a note, they recall that on January 4, 2021, the shareholders of both companies will meet separately and will be invited to approve the transaction.

The merger is expected to close by the end of the first quarter of 2021. 



Today's decision follows the Commission's in-depth investigation into the transaction that will lead to the creation of the world's fourth largest auto group, to be called Stellantis.

During its investigation, the commission gathered extensive information and feedback from the two companies' competitors and customers. 



Brussels feared that the transaction, as initially notified, could harm competition in the small light commercial vehicle market in nine member states (Belgium, Czechia, France, Greece, Italy, Lithuania, Poland, Portugal and Slovakia), where the companies have combined "high or very high" market shares.

The acquisition would therefore likely have resulted in higher prices for customers. 



To respond to the concerns of the Commission, FCA and PSA have offered to encourage market opening through some remedies. 



First, through an extension of the cooperation agreement currently in place between PSA and Toyota, which will allow Toyota to compete effectively with the merged new entity. 



Second, through an amendment to the "repair and maintenance" agreements for passenger cars and light commercial vehicles in place between PSA, FCA and their repair networks, which will facilitate competitors' access to those same networks. 



The Commission therefore concluded that the transaction, as amended by the commitments, no longer raises competition concerns.