The European Commission decided on Wednesday 17 June to open an in-depth investigation to assess the proposed merger of the automotive companies Fiat Chrysler Automobiles N.V. (‘FCA’) and Peugeot S.A. (‘PSA’) under EU merger rules.
The Commission is concerned that the proposed transaction could reduce competition for light commercial vehicles (vans) below 3.5 tonnes in the European Economic Area (EEA) and, more specifically, in 14 EU countries (Belgium, Croatia, Czech Republic, France, Greece, Hungary, Italy, Lithuania, Luxembourg, Poland, Portugal, Slovakia, Slovenia, Spain) and the UK.
The two groups, which would form the fourth largest company in the sector globally, occupy “a strong position” in the commercial vehicle market, explains Margrethe Vestager, Executive Vice President responsible for Competition Policy.
PSA and FCA would together hold large market shares in the countries mentioned, as well as the widest range of brands and models of all sizes. The parties appear to be very strong in the small van segment. PSA and FCA have always competed for vans in several EU countries, and the prices for their vans were similar. The merger would remove an important competitive constraint for both parties. (Original version in French by Lionel Changeur)