Fiat Chrysler, PSA merger could hit roadblock over EU concerns
Brussels, Belgium - EU antitrust regulators are concerned about Fiat Chrysler and Peugeot parent company PSA's combined high market share in small vans and may require concessions to clear their $50 billion merger (R840bn), people familiar with the matter said.
The companies, which are seeking to create the world's fourth biggest carmaker, were told of the European Commission's concerns last week.
If Fiat and PSA fail to dispel the European Commission's doubts in the next two days, and they subsequently decline to offer concessions by Wednesday, the deadline for doing so, the deal would face a four-month long investigation.
The EU competition enforcer, which has set a June 17 deadline for its preliminary review, declined to comment. Fiat was not immediately available for comment while PSA had no immediate comment.
Hiving off overlapping businesses, usually a regulatory demand to ensure more competition, could prove tricky for the two carmakers because of the technicalities involved.
Fiat and PSA are looking to merge in order to help offset slowing demand for vehicles as well as shoulder the cost of making cleaner vehicles to meet increasingly tough emissions regulations.
The deal puts under one roof the Italian-American carmaker's brands such as Fiat, Jeep, Dodge, Ram, Maserati as well as the French company's Peugeot, Opel and DS brands.Reuters
Click here to sign up for the IOL Motoring Newsletter and receive all the latest motoring news and launch reports, industry insights, car reviews and motorsport gossip in your inbox every Monday, Wednesday and Friday.