Fiat Chrysler and French rival PSA received EU antitrust approval on Monday for their $ 38 billion merger to create the world’s number 4 carmaker after promising to increase Japanese rival Toyota Toyota.
The two automakers are looking into the deal to help them address the industry’s dual challenges of financing cleaner vehicles and the global pandemic.
The European Commission said PSA will extend its small car deal with Toyota Motor by increasing Toyota’s capacity and lowering transfer prices for vehicles, spare parts and accessories to meet EU competition concerns, a Reuters report confirmed in October.
“Access to a competitive market for small commercial vans is important for many self-employed and small and medium-sized enterprises throughout Europe,” said European Competition Commissioner Margrethe Vestager in a statement.
EU Fiat and PSA will also allow rivals access to their van repair and maintenance networks to help new entrants expand into the market.
The merged entity to be called Stellantis would own brands such as Fiat, Jeep, Dodge, Ram and Maserati as well as Peugeot, Opel and DS.
“FCA and Groupe PSA warmly welcome the European Commission’s approval of the merger and the creation of Stellantis, a world leader in new mobility,” the companies said, adding that shareholders in both companies will meet separately on January 4 to approve the transaction.
“The merger is expected to be completed by the end of the first quarter of 2021.”
FCA’s controlling shareholders are Exor, the holding company in Italy’s Agnelli family, while PSA’s investors are the Peugeot family, the French government and China’s Dongfeng.