EU approves the merger of Italian and French automobile giants, and the world’s fourth largest automobile enterprise will emerge

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After nearly half a year’s deliberation, the European Commission’s antitrust agency approved the merger application of PSA and FCA on December 21 local time.
The merger is expected to be completed in the first quarter of next year, making it the world’s fourth largest auto company in terms of production. However, the European Commission approval still attached conditions, requiring companies to open up competition in the field of van.
According to Forbes and Reuters on December 21, the European Commission’s general competition Department approved the same day, marking the merger of Citroen and Fiat Chrysler into a new company stellantis, which is also the largest and most important auto transaction in 2020.
Stellantis’ new brand identity
Stellantis is named after the Latin “Stella” (star). After the merger, the original brands of the two companies, such as Opel, Citroen, Peugeot, Chrysler, jeep, alpha Romeo, lancha, Abbas or dodge, will be retained. The merger plan will be voted by shareholders at the end of January next year.
“Peugeot Citroen and Fiat Chrysler warmly welcome the European Commission’s approval of the merger and the establishment of stellantis, which will become a global leading new car company,” the two companies said in a statement. The merger is expected to be completed by the end of the first quarter of next year. ”
However, the EU still has requirements for the merger, mainly in the field of small commercial vehicles. At the beginning of July this year, the EU antitrust agency launched an in-depth review on the merger application. At that time, the European Union was worried that the merger would have an impact on the competition of small commercial vehicles less than 3.5 tons.
In the small commercial truck market of many countries, the model with the largest sales volume basically comes from the logo Citroen and Fiat Chrysler. So, according to a statement by the European Commission, one of the two most important competitions will exit the market after the merger.
After that, the two companies adjusted the wording of the merger proposal to deal with the concerns of the European Commission and customers, and the trial was finally passed. The European Commission said the two companies would allow competitors to use their truck repair and maintenance networks to help new entrants expand the market.
Citroen has also offered to increase production from its joint venture with Toyota to sell commercial trucks at close to cost.
Forbes reported that the merger will create the world’s fourth largest automobile group, after Volkswagen Group, Toyota, and the troubled Renault Nissan Alliance, and will surpass Ford and general motors in the process. The group will have a number of powerful brands, from RAM and jeep to Peugeot, Citroen and Opel.
But there are also some brands under the group, such as DS, Dodge, Alfa Romeo, Fiat, Lancia, Chrysler and Maserati.
Stellantis’s goal is to cut operating costs by $6 billion a year while keeping all plants operating. Forbes said the merger was actually a French company’s “acquisition” of Fiat Chrysler.
The controlling shareholder of Fiat Chrysler is EXOR, the holding company of Italian Agnelli family, while the investors of Citroen include Peugeot family, French government and Dongfeng Motor Company from China.