Daily Management Review

EU authorities approve $38B merger of Fiat Chrysler and PSA


On Monday, 21 December, the European Commission said it was giving its approval for the merger of two carmakers, Fiat Chrysler (FCA) and PSA.

The merger would create the world's fourth-largest car manufacturer, so EU authorities were checking the deal for compliance with antitrust requirements.

As a reminder, FCA and PSA announced their intention to merge at the end of 2019. The deal is valued at $38bn. The combined company will be called Stellantis and will include such brands as Fiat, Jeep, Maserati, Peugeot and Opel. 

In June, the European Commission began scrutiny of the deal, saying it could hurt competition in EU small truck manufacturing. PSA has now agreed to produce some of these trucks for Toyota, so they will be sold under the Toyota brand. In addition, FCA and PSA will give competitors access to their service and repair networks for such trucks in the EU.

Final approval of the deal is due in early January from the boards of both companies, but this is more of a formal point and no difficulties are expected. FCA and PSA plan to complete the merger by the end of the first quarter of 2021.

source: ft.com