The European Commission has approved the acquisition of Opel by Peugeot. After a detailed examination, the authority claims to have no competition concerns, conditions will not exist.
Peugeot Opel cars in front of a dealership
Wednesday, 05.07.2017
5:32 pm
The EU Commission has approved the takeover of the German car manufacturer Opel by the French PSA group. The purchase will be approved without conditions, said the Brussels authority on Wednesday. The project does not raise competition concerns in the markets concerned. The common market shares are comparatively low.
Only in Estonia and Poland is the share for both carmakers at more than 40 percent, but the growth rates amounted to less than five percent. The merged entity continues to face stiff competition in Europe over major European manufacturers, the US Ford group or Asian automakers.
PSA wants to conclude the 2.2 billion euro takeover of Opel by the previous owner General Motors later this year.
The French Peugeot parent company PSA had already announced in March its intention to take over the German carmaker from the US company General Motors. The result would be Europe’s second-largest carmaker after Volkswagen. The total of 2.2 billion euros business could be completed by the end of the monthas Opel recently announced.
PSA boss Carlos Tavares promised that Opel should stay as German as possible in order to complement the other brands. But he also announced an ambitious schedule: By 2020, Opel should make a profit, said Tavares. He sees savings potential particularly in purchasing, sales and export. But he declined employment guarantees for the 38,000 or so Opel employees beyond 2018. “You have to be open and honest: the only thing that protects employees is profit.”