Fiat-Chrysler transaction receives European Commission`s approval

Posted on Tuesday, 28 July 2009 , 13:07:00 byEmil

Filed under fiatchryslertransactioneuropeancommissionapprovalFiatChrysler

Fiat-Chrysler transaction receives European Commission`s approval

The Italian automaker Fiat has received the European Commission`s unconditional approval that was required in order that the Fiat Group – Chrysler Group LLC transaction to continue. The European Commision`s explanation for their decision is that the company resulting from the transaction between Fiat Group and Chrysler Group LLC would not do any damage to the global competition. This decision was said to be one of the last obstacles in Fiat Group`s journey to buy the Chrysler LLC Group. Still, the decision was quite easy to predict, no one the European Commission to give a negative vote.

In the statement it is said that ``The Commission`s examination of the transaction showed that the horizontal overlaps between the activities of Chrysler and Fiat are limited``. Another paragraph of the statement says that ``As Chrysler is not present on the upstream markets concerned, the transaction would not strengthen the market position of the merged entity or the extent of its vertical integration``.

The European Commission represents no less than twenty seven European countries. Another very interesting thing that is found in the official statement of the European Commission is the fact that the Fiat Group can acquire over time more than 50% of the Chrysler Group LLC, but only after the automaker gets rid of its loans to the US Treasury.