The EU is worried the union of Peugeot and Fiat will dominate van sales, and high margins make it hard to justify outsized market share. Selling to a smaller rival like Agnelli-backed CNH would boost competition and let the merger pass, says CGAThompson:
Fiat Chrysler Automobiles and Peugeot’s proposed merger may harm competition in small vans in 14 European Union countries and Britain, EU antitrust regulators said on June 17 as they opened a four-month investigation into the deal.
The two companies want to create the world’s fourth-biggest carmaker to help offset slowing demand and share the cost of making cleaner vehicles to meet tougher emissions regulations. However, the European Commission said it was concerned about the merged company’s high market share in small vans. “In many countries, either PSA or FCA is already the market leader in light commercial vehicles, and the merger would remove one of the main competitors,” the EU executive said.
It said the deal could reduce competition in Belgium, Croatia, the Czech Republic, France, Greece, Hungary, Italy, Lithuania, Luxembourg, Poland, Portugal, Slovakia, Slovenia, Spain and the United Kingdom, and set an Oct. 22 deadline for its decision.
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