European Commission approves takeover of Chrysler by Fiat

European Commission approves takeover of Chrysler by Fiat

The European Commission approved on Friday, taking the U.S. Chrysler Group by italian car manufacturer Fiat, considering that the transaction does not have a negative impact on competition.

According to EC, the sale will not change the competitive structure in the automobile manufacturers and parts thereof. "Analysis of the transaction showed that duplication of Fiat and Chrysler are limited," stated in a communication of the Executive, the European Union.

Italian group acquired an initial stake of 20% at Chrysler and has concluded a series of agreements whereby the U.S. will have access to technology Fiat. Italian manufacturer could increase its share in the future and the Chrysler have the right to participate in decision making in the U.S..

In the meantime, Fiat and may increase participation in Chrysler to over 50% after the U.S. company will refund the loans received from the U.S. Treasury.

Chrysler produces cars and commercial vehicles under the brands Chrysler, Jeep and Dodge and went into bankruptcy in April.

The company obtains more than 90% of revenue in North America and does not have production units in Europe.

Source: http://www.fiat.com/


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