Fiat Chrysler, PSA get EU okay for $38 bln merger

A green light to create the world's No.4 carmaker.

Fiat Chrysler and French rival PSA gained EU antitrust approval on Monday (Dec 21) for a $38 billion merger.

The two carmakers are looking to the deal to help them tackle the industry's dual challenges of funding cleaner vehicles and the global pandemic.

Addressing competition concerns, the European Commission said PSA will extend its small van agreement with Toyota by increasing capacity for the Japanese firm, and cutting transfer prices for spare parts and accessories.

The EU competition enforcer also added that Fiat and PSA will allow rivals to access their repair and maintenance networks for vans to help new entrants expand in the market.

The merged entity is to be called Stellantis.

And will own brands such as Fiat and Peugeot.

As well as Jeep, Maserati, Opel and more.

The shareholders of both sides will meet separately on January 4th to approve the transaction.

With the merger expected to complete at the end of the first quarter of 2021.