Antitrust regulators in the European Union will make a determination on June 17 whether or not to clear the $50 billion merger between Fiat Chrysler Automobiles and PSA Group, Reuters reports.
A filing from the European Commission reveals that FCA and PSA sought EU approval for the deal on Friday after first announcing the merger to create the world’s fourth-largest car manufacturer in October 2019. The joint venture will be incorporated in the Netherlands.
Competition enforces in the EU can approve the deal with or without conditions or choose to open a full-scale investigation of about four months at the conclusion of the preliminary review if they have deep concerns.
The joint venture between FCA and PSA is expected to achieve about £3.35 billion in annual run-rate synergies and have a combined market value of around £40.5 billion. Shareholders of each company will own 50% of the combined unit while the board will be comprised of 11 members with five of them nominated by FCA, with John Elkann as chairman, and five of them nominated by PSA, with Carlos Tavares assuming the position of chief executive for an initial term of five years.
“This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity,” Tavares said when the merger was first announced last year. “I’m pleased with the work already done with Mike and will be very happy to work with him to build a great company together.”