Groupe PSA is attempting to address European Union antitrust concerns over its merger with Fiat Chrysler Automobiles by assisting Toyota, a Reuters report suggests.
The report, which lists unnamed sources close to the matter, says PSA has offered to increase production capacity at the Sevelnord van plant in Northern France – a joint venture facility it runs in collaboration with Toyota. The two firms would also sell the vans at cost price, it is claimed.
The offer is said to have been submitted to the European Commission late last week after the body raised concerns that the two merged companies would swallow up too high a share of the small van market in 14 EU countries and the UK. The two brands sold 775,000 trucks and vans between them last year.
PSA and FCA, which if merged would form an entity known as Stellantis, have stressed in a statement that “the transaction has obtained merger clearance in fourteen jurisdictions. As previously stated, closing of the transaction is expected to occur in the first quarter of 2021.”
However, the European Commission has refused to confirm when it will make a decision. “The deadline is still suspended” it said when requesting data from the companies back in July.
The deal, agreed by both companies in December last year, would create the world’s fourth largest car maker based on sales if approved. It’s thought the Commission will now deliberate with the firms and its rivals to either clear or block the deal or demand further concessions.
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