The European Commission approved the merger of Fiat Chrysler and PSA

According to the results of the audit, the European Commission approved the merger of the ITAL-American Auto Concert Fiat Chrysler Automobiles (FCA) and the French group PSA (unites the brands of Peugeot, Citroen and Opel). As a result of this transaction, which is planned to be closed at the beginning of 2021, a large concern called Stellantis will be created.

The European Commission said that PSA promises to make cars for the Japanese Toyota Motor Corp. at their factories in France and Spain. And to provide competitors with access to their repair network eliminated the concern of the regulator about the growth of the combined company in the market of small vans, Interfax reports.

Recall that FCA and PSA in December last year agreed to work on a complete unification of companies through a merger on the principle of 50/50. It is assumed that after a merger, the shareholders of the two concerns will receive 50% of the shares of a united company, which will be headed by PSA General Director Carlos Tavarez.

As a result of the focus of FCA and PSA, an auto giant with a capitalization of more than $ 40 and revenue of $ 190 billion a year should appear on the market. The production volume of 8.7 million per year will make this company the fourth car manufacturer in the world in this indicator after Volkswagen, Toyota and Renault-Nissan. The total income of the united company will amount to 170 billion euros, and the operating profit - 11 billion euros.

Prior to the conclusion of the transaction with the PSA, the Fiat Chrysler concern suggested Renault to create a joint company on a parity basis. At first, this proposal for the merger was perceived with enthusiasm, but the French government, which owns 15% of Renault shares, asked the company's board to postpone the decision. After that, the FCA announced the review of the proposal.