Fiat Chrysler’s planned merger with Peugeot-maker PSA looks set to face a long EU probe.
Reuters sources say the European Commission is concerned the combined firm would be too dominant in the market for small vans.
It reportedly set a Wednesday (June 10) deadline for the companies to offer concessions.
But the day came and went without any such moves.
That will automatically trigger a four-month-long investigation when the Commission completes its initial review on June 17.
The 50-billion dollar deal is supposed to create the world’s fourth-largest carmaker.
It’s not obvious what operations could be altered or divested to satisfy the EU’s concerns.
A Reuters source says the two firms are relatively relaxed about the probe.
Since the deal is hugely complicated anyway, it wasn’t expected to wrap up within four months.
The pair hope to finalise the merger in the first quarter of 2021.
Thursday (June 11) saw shares in both firms tumble though.
Fiat Chrysler was down over 5% in early European trade.
PSA plunged as much as 7%.