The EU no longer has any antitrust concerns about the planned mega merger between the Opel parent company PSA and Fiat Chrysler (FCA). However, the prospect of approval is tied to obligations, as the EU Commission announced. The takeover will create the fourth-largest car company in the world.

The crux of light commercial vehicles “We can approve the merger of Fiat Chrysler and Peugeot SA, as their commitments will facilitate the entry and expansion of new providers in the market for light commercial vehicles,” said EU Commission Vice President Margrethe Vestager. “In the other markets in which the two automobile manufacturers are currently active, competition will not lose momentum even after the merger.”

PSA with the Brands Opel, Peugeot, DS and Citroën and FCA had decided on their merger plans in December 2019. According to earlier information, they should be implemented by the end of March 2021 at the latest. Before the crisis caused by the Covid – – pandemic, Fiat Chrysler and PSA together sold around 8.7 million vehicles per year and had sales of 170 Billion euro. Only Volkswagen, Toyota and Renault-Nissan were 2019 larger.

The future group is to be derived from the Latin word for star (“Stella” ) are called “Stellantis”. The individual brand names such as Opel, Peugeot, Citroën, Chrysler, Jeep, Alfa Romeo, Lancia, Abarth or Dodge are to be continued.

Will the merger undermine competition? The EU competition watchdogs initiated an in-depth examination of the merger in mid-July because they feared that the planned merger would lead to competition in the market for light commercial vehicles with a total weight of up to 3.5 tonnes could restrict. In many countries, either PSA or FCA is the market leader in light commercial vehicles, and the merger would mean that one of the most important competitors would be eliminated there, according to the rationale.

PSA must Pay more attention to Toyota Now the companies essentially have to keep two commitments. On the one hand, an existing cooperation between PSA and Toyota is to be expanded, according to which PSA manufactures light commercial vehicles for Toyota for sale in the EU. On the other hand, the repair and maintenance contracts of PSA and FCA with their workshops are to be changed. For example, it should no longer be stipulated that there are reception or waiting areas reserved for FCA / PSA commercial vehicles. The use of tools from both manufacturers for the repair of light commercial vehicles of other brands should also be allowed.

(fpi)