| Author (Corporate) | Cardiff EDC (Compiler) |
|---|---|
| Series Details | Case M.9730 |
| Publication Date | 2020 |
| Content Type | Overview |
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Summary: Reports and information relating to the in-depth investigation conducted by the European Commission on the proposed merger of automotive companies Fiat Chrysler Automobiles N.V. (FCA) and Peugeot S.A. (PSA). The assessment was conducted under the European Union's Merger Regulation. Further information: FCA and PSA announced in December 2019 they had signed binding merger terms. The proposed transaction was notified to the European Commission on 8 May 2020. Neither of the companies decided to submit commitments during the initial investigation to address preliminary concerns raised by the European Commission. The Commission showed its concerns over a potential reduction in competition with respect to light commercial vehicles (vans) across the European Economic Area (EEA) and, in particular, in 14 EU Member States as well as the United Kingdom (UK). The preliminary investigation showed that PSA and FCA historically competed head-to-head for vans in a number of countries and price positioned their vans similarly. The merger would remove a competitive constraint for both of them. In addition, the market for light commercial vehicles seems to be characterised by relatively high barriers to entry and expansion. New entry appears unlikely on any significant scale. On 17 June 2020, the Commission announced the opening of an in-depth investigation into the effects of the proposed transaction, to determine whether it is likely to significantly reduce effective competition. That investigation should be conducted within 90 working days and it does not prejudge its outcome. |
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| Subject Categories | Business and Industry |
| Subject Tags | Automotive Industry, Competition Law | Policy |
| Keywords | Light Vehicles, Mergers and Acquisitions |
| International Organisations | European Union [EU] |
