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The European Commission is set to approve the merger between PSA and FCA before the end of 2020.


Written by Frédéric Dubessy on Monday, October 26th 2020 à 15:01 | Read 431 times



Carlos Tavares, Chairman of the FCA Board of Directors, and Mike Manley, CEO of FCA, confirmed their marriage in December 2019 (photo: PSA Group)
Carlos Tavares, Chairman of the FCA Board of Directors, and Mike Manley, CEO of FCA, confirmed their marriage in December 2019 (photo: PSA Group)
FRANCE / ITALY. In June 2020, the European Commission had decided to open an in-depth investigation into the planned merger between the two major car manufacturers: the French Peugeot S.A. (PSA) and the Italian-American Fiat Chrysler Automobiles (FCA). The institution feared the reduction of competition on light commercial vehicles (vans) where the two groups are very present in Europe.

According to sources close to the dossier, questioned by the Reuters press agency, this process has been completed and will lead to a validation of the grouping. It should take place before the end of 2020. The effective legal merger would therefore take place at the end of the first quarter of 2021.

Announced at the end of October 2019, and confirmed by a signature in December 2019, the merger between PSA (Peugeot, Citroën, DS, Opel and Vauxhall brands) and FCA (Fiat, Chrysler, Jeep, Maserati, Alfa Romeo, Dodge, Ram) will create the world's fourth largest group in the sector. It will enable annual cost reductions estimated at €5 billion, without any plant closures.
In 2009, the two groups together accounted for €170 billion in sales with nearly 8 million vehicles sold, representing a market share of more than 34%.

The new group will take the name Stellantis.

 



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