the EUROPEAN Commission suspect that a large merger between Fiat Chrysler and Peugeot from can harm competition on the market for small vans.
The two companies announced at the end of 2019, that they had entered into an agreement to settle together.
the EU’s competition commissioner, Margrethe Vestager, suggests that the two manufacturers are already dominant in the market in the EU countries.
the Merger will pill a major competitor out of the equation. It can cost on competition to the detriment of consumers, highlighting the commissioner.
‘We will examine carefully whether the proposed merger can affect competition adversely in this market. We will ensure a healthy competition for all the persons and companies which are dependent of the vans to their activities,’ said Vestager in a written communication.
the market for vans under 3.5 tonnes. The concern is directed against the 14 EU countries and the united kingdom. Denmark is not among these countries.
The two companies gave an official message to the EU about the plans 8. may of this year.
From the date, the EU-Commission 25 working days to decide whether it could give the green light to the merger. Or whether to open an investigation, as it potentially is in conflict with the EU’s rules of competition.
The preliminary investigation shows that the two manufacturers ‘have historically competed against each other in the market for vans in a number of EU countries’.
the EUROPEAN Commission has 90 days to investigate the matter to the bottom. Then it must come with a decision.
Fiat Chrysler (FCA), which among other things is behind the Fiat, Chrysler, Jeep and Alfa Romeo, are the result of an earlier merger of Italian Fiat and american Chrysler.
Peugeot (PCA), which is behind the brands Peugeot, Citroen and Opel, is French.
the Merger will make the company one of the world’s largest car manufacturers. Only three are larger. It is Volkswagen, Renault-Nissan and Toyota.
