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CADE unconditionally clears the transaction between Fiat Chrysler and Peugeot

Merger and Acquisition

The Tribunal dismissed a proposal to request the case for assessment and cleared the transaction, already cleared by the General Superintendence
published: Dec 10, 2020 08:02 PM last modified: Dec 10, 2020 08:02 PM
by International Unit

In the hearing session of this Wednesday (9 December), the Administrative Council for Economic Defense (CADE) unconditionally cleared the merger between Fiat Chrysler and Peugeot. The Tribunal of CADE dismissed a proposal to request the case for assessment submitted by the commissioner Lenisa Prado and cleared the transaction that has already been cleared by the General Superintendence of CADE.

The merger of the firms will result in the auto group Stellantis. On its analysis, the General Superintendence concluded that the transaction results in some horizontal overlap and vertical integration that do not cause competition concerns. For said reason, in November, the General Superintendence opinion was to unconditionally clear the case.

The commissioner Lenisa Prado raised concern when proposing the request to assess the case as to the vertical integration involving motor and exhaust systems and to the horizontal integration in the market of vans. However, the Tribunal did not approve the request.

At CADE's understanding, although the transaction concerns well-known brands, the general overview in Brazil due to this international transaction is not alarming, considering the size of the Group PSA (Peugeot) in Brazil. According to the Tribunal, unlike past experiences when Brazil had basically four car assemblies, nowadays many firms operate in the country with strong competition level.

Consequently, the Tribunal dismissed the commissioner's proposal and decided to unconditionally clear the transaction based on the opinion of the General Superintendence.

Access the Administrative Proceedings 08700.002193/2020-18.