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The EU decision means Stellantis is cleared for take-off when the merger transaction is completed in Q1, 2021 |
The planned merger of PSA and FCA has been formally approved by the EU after an investigation into competition concerns due to the two companies’ position in Europe’s light commercial vehicle market.
The merger transaction will lead to the creation of the fourth largest automotive group in the world, to be called “Stellantis”.
The European Commission said PSA will extend its small van agreement with Toyota by increasing capacity for Toyota and cutting transfer prices for the vehicles, spare parts and accessories. The EC said the remedy will enable Toyota to compete effectively with the merged entity in the relevant markets in the future.
Executive Vice-President Margrethe Vestager, responsible for EU competition policy, said: “Access to a competitive market for small commercial vans is important for many self-employed and small and medium companies throughout Europe. 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.”