The European Commission cleared the proposed merger between the motor vehicle companies Fiat Chrysler Automobiles N.V. (‘FCA’) and Peugeot S.A. (‘PSA’) on Monday 21 December. The authorisation is conditional upon full compliance with a series of commitments offered by the two companies.
Margrethe Vestager, Executive Vice-President in charge of 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 between Fiat Chrysler and Peugeot S.A. 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”.
The Commission had concerns that the transaction could affect competition in the market for small light commercial vehicles in nine EEA Member States (including Belgium, the Czech Republic, and France). The acquisition would therefore likely have resulted in higher prices for customers.
To address the Commission’s concerns, FCA and PSA have offered the following commitments to promote market entry and expansion: - an extension of the existing cooperation agreement between PSA and Toyota Motor Europe (Toyota) for small light commercial vehicles, under which PSA produces the vehicles sold by Toyota under the Toyota brand mainly in the European Union; - an amendment to the existing repair and maintenance agreements for passenger cars and light commercial vehicles in force between PSA, FCA, and their repairer networks to facilitate competitors’ access to PSA’s and FCA’s repair and maintenance networks for light commercial vehicles.
The first remedy will allow Toyota to compete effectively with the merged entity in the relevant markets in the future. The second remedy will help new entrants expand and compete in the light commercial vehicle markets. (Original version in French by Lionel Changeur)