European Commission has announced that it launched an in-depth investigation into the merger between Fiat Chrysler Automobiles N.V. (FCA) and Peugeot S.A. (PSA). The Commission is concerned that the transaction may reduce competition for light commercial vehicles (vans), that are important for individuals, SMEs and large companies.
UK based FCA, manufactures, supplies and distributes passenger vehicles and light commercial vehicles under the brands Fiat, Chrysler, Jeep, Alfa Romeo, Lancia, Abarth, Dodge, Ram, and Fiat Professional. On the other hand, PSA, headquartered in France, manufactures, supplies and distributes passenger vehicles and light commercial vehicles under the Peugeot, Citroën, Opel, Vauxhall and DS brands. Both companies are already the market leader in light commercial vehicles in many countries.
In the preliminary investigation, Commission has determined that PSA and FCA competed head-to-head for vans in a number of EU Member States and price positioned their vans similarly in the history. Commission also determined that PSA and FCA combined would hold high market shares, together with the widest range of brands and models across all sizes and light commercial vehicles seems to be characterized by relatively high barriers to entry and expansion. As a result, the Commission launched an in-depth investigation with the concern that the merger could significantly reduce competition.
(European Commission – 17.06.2020)
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