European Union antitrust regulators are investigating the proposed mega-merger between Fiat Chrysler and the French PSA, which incorporates Peugeot, Citroen, Opel and other smaller brands.
Regulators are concerned that the merger may damage competition in 14 EU countries and the UK. Member states affected include Belgium, Croatia, the Czech Republic, France, Greece, Hungary, Italy, Lithuania, Luxembourg, Poland, Portugal, Slovakia, Slovenia and Spain.
The European Commission said it was particularly worried about the merger yielding a high market share in small vans. Such vans — commercial vehicles that weigh less than 3.5 metric tons — are technically easy to manufacture, but are sold at a high markup.
“With their large portfolio of brands and models, the two companies have a strong position in commercial vans in many European countries,” said commission Vice-President Margrethe Vestager, who is responsible for competition in the bloc, in a statement. “There are fewer competitors in vans than in passenger cars, and in most of these countries, all competitors would be significantly smaller than the merged entity.”
The Commission said that during a preliminary review of the deal, the two carmakers had declined to offer concessions on its concerns.
The probe will last 90 days.
Full Content: Financial Times
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