Commission Approves Aquisition of Chrysler by Fiat
10/08/2009
The European Commission has announced the approval of the acquisition of
Chrysler by Fiat. Examining the case, the Commission found that under rules of
the EU merger regulation, the merger would not "significantly change the
competitive structure of the markets for the manufacture and supply of
passenger cars." Chrysler applied for bankruptcy protection under Chapter 11 through the US Bankruptcy Code in April and
announced plans to form an alliance with Fiat. The Commission also found that
due to 90% of Chrysler's business being in the US, "the merger would not significantly enhance the merged entity's market position and it would therefore not have the ability or incentive to restrict its competitors' access to the inputs necessary for their vehicle production." (Source: European Commission)