The European Commission has approved the merger between Fiat Chrysler Automobiles and Groupe PSA. The merged company, called Stellantis, will become the fourth largest car manufacturer in the world.
Stellantis must adhere to certain conditions, reports the EC Monday. The car manufacturers have agreed to keep the market easily accessible for small commercial vans. The EC was concerned that there would no longer be enough room for competition in that market after the merger, but has been reassured by the agreements.
FCA and PSA have been involved in the merger since last fall. Last summer, the investigation into the merger was temporarily suspended by the EC. The parties had not provided enough information. Suspending the investigation moved the deadline for Brussels to pass judgment on the intended merger. That deadline was set for mid-November. The intention is to complete the merger early next year. Car brands such as Fiat, Alfa Romeo, Jeep, Dodge, Ram and Maserati then belong to the same company as Peugeot, Citroën, DS and Opel.
It was recently announced that Stellantis will be definitively formed on January 4. It is also already clear who will be at the helm. PSA CEO Carlos Tavares will be the CEO of the new group. John Elkann, from FCA, becomes chairman of the board. Mike Manley, now CEO of FCA, heads the US arm of Stellantis.