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FNE approves in Phase II, with remedies, the merger of Fiat Chrysler Automobiles N.V. and Peugeot S.A.

04 / 01 / 2021

The National Economic Prosecutor’s Office (FNE) approved in Phase II, with remedies, the transaction consisting on the international merger of Fiat Chrysler Automobiles N.V. (FCA) and Peugeot S.A. (PSA).

The investigation began on April 15, 2020. During Phase I, the FNE carried out several proceedings that lead to focus the competitive analysis on the light commercial vehicle segment (LCV), in light of the market shares of FCA and PSA.

Given the fact that the merger could substantially lessen competition, the FNE extended the investigation to a Phase II in order to carry out an in-depth analysis of the market, the effects of the merger, the conditions of entry and the possible countervailing factors, with special emphasis on the van segment. During this phase, the FNE gathered additional background information through an online survey designed by the FNE and directed to final consumers as well as an online questionnaire addressed to operating lease companies

The result of the investigation showed that FCA and PSA are close competitors in the small van segment, with the former offering the models RAM V700 City and RAM V1000 and the latter the models Peugeot Partner, Citroën Berlingo and Opel Combo

The FNE concluded that the merger, as initially notified, could result in the incentives and ability of the merged entity to increase the prices of some of the small van models offered by FCA, both in the retail segment and in the segment of sales of vehicles fleets to operating lease companies.

In consideration of the analysis made by the FNE and the problems identified, FCA and PSA offered remedies to mitigate the risk of price increase in in small vans.

The remedies are the following:

1) The obligation to keep the import and wholesale distribution of RAM and Citroën brand products to independent third parties for three years.

2) The obligation to maintain the wholesale distribution of Peugeot and Opel brands on PSA’s Chilean subsidiary for three years.

3) Also, considering that PSA and Toyota have a cooperation or joint venture agreement for the development, manufacture and supply of small LCVs in the EMP2 (K9) platform -where the Peugeot Partner, Citroën Berlingo, Opel Combo and Toyota Proace models are produced-, the commitments include the unilateral obligation of PSA to offer Toyota an annual capacity of small LCVs destined exclusively for Chile. This annual capacity is over and above the capacity considered in the remedy offered as a result of the approval of the transaction by the European Commission’s DG Comp and can be requested by Toyota at its sole discretion during the term of the cooperation agreement. Additionally, the remedy offered by PSA includes a discount on the transfer prices of the vehicles and on the prices of parts and spare parts associated with such products.


To assess whether the remedies offered resolved the competition concerns derived from the merger, the FNE presented the proposed remedies to interested third parties, in accordance with the provision established in article 53 final paragraph of DL 211.

In this regard, it was concluded that the remedies would be (i) effective and suitable to address the substantial lessening of competition; (ii) feasible to implement, enforce and monitor; and (iii) proportionate regarding the competition concerns detected as a result of the merger. That, because a joint consideration of the remedies allows to conclude that they would enhance inter-brand and intra-brand competition in customer service variables other than the price and quality of the vehicles, and would promote the possible expansion of a close competitor to the parties in Chile.

Fiat Chrysler is an Italian-American automotive business group that manufactures and markets components and vehicles worldwide, under the brands Abarth, Alfa Romeo, Chrysler, RAM, Dodge, Fiat, Jeep, Lancia and Maserati. In Chile, the group is represented by an independent third party.

Peugeot is a French business group that manufactures and markets components and vehicles worldwide, under the Peugeot, Opel, Citroën, Vauxhall and DS brands. In relation to the Peugeot and Opel brands, the group participates directly in Chile in the import, distribution and retail sale of vehicles, parts and spare parts. Regarding the Citroën and DS brands, it is represented by an independent third party.

The decision and the approval report will be published on the FNE’s website, once the public version of these documents has been made.