The merger of FCA and PSA was approved by the EU antitrust agency

According to foreign media reports, on December 21, the merger between FCA and French competitor PSA was approved by the European Union’s antitrust authorities. The two companies will complete a $38 billion merger transaction to create the world's fourth largest automaker. Prior to this, the two parties promised to boost sales of Japanese rival Toyota.

(Image source: Chrysler)

FCA and PSA hope that this transaction can help them solve the dual challenges currently facing the automotive industry, namely, obtaining funding for the production of clean vehicles and responding to the global epidemic.

The European Commission stated that PSA will extend the minivan agreement signed with Toyota to increase production capacity for Toyota and reduce the transfer price of vehicles, parts and accessories, thereby addressing EU antitrust concerns. EU Competition Commissioner Margrethe Vestager said in a statement: “For many freelancers and small and medium-sized enterprises in Europe, the degree of competition in the small commercial truck market is very important.” The EU antitrust agency also said that FCA and PSA will also Allow competitors to use its truck repair and maintenance network to help new entrants expand the market.

The company established after the merger will be called Stellattis and will have many brands such as Fiat, Jeep, Dodge, Ram, Maserati, Peugeot, Opel and DS. The two companies said: 'FCA and PSA Group extend a warm welcome to the European Commission's approval to authorize the merger and establishment of Stellattis. Stellatis will become a world leader in the new mobility field. This merger transaction is expected to be completed by the end of the first quarter of 2021. 'The two companies stated that shareholders of both parties will hold separate meetings on January 4 to approve the transaction.