Regulators in Europe plan to take a longer look at the proposed merger of Fiat Chrysler Automobiles and the maker of Peugeot, raising concerns about the potential negative impact on competition.
European Commission Executive Vice President Margrethe Vestager, in remarks posted on the commission's website Wednesday, pointed specifically at the commercial van sector as an area of competitive concern should FCA and PSA Group become one.
"We will carefully assess whether the proposed transaction would negatively affect competition in these markets and ensure that a healthy competitive landscape remains for all the individuals and businesses relying on commercial vans for their activities," Vestager said in a news release.
Commercial vans are an "increasingly important market in a digital economy where private consumers rely more than ever on delivery services," she said.
The commission noted that either FCA or PSA Group is the market leader in light commercial vehicles in many countries, and a merger "would remove one of the main competitors."
The commission said the merger could "significantly reduce" van competition in Belgium, Croatia, the Czech Republic, France, Greece, Hungary, Italy, Lithuania, Luxembourg, Poland, Portugal, Slovakia, Slovenia, Spain and the United Kingdom.
Wednesday had been designated as the deadline for a decision on whether the commission, which is the executive arm of the European Union, would OK the proposed 50/50 merger or launch a deeper investigation.
The proposed merger of FCA and PSA Group, which was announced last year, would create the world's fourth-largest automaker and bring Jeep, Ram, Chrysler, Dodge, Fiat, Alfa Romeo and Maserati together with Peugeot, Citroen, Opel and Vauxhall under one umbrella.
Despite any concerns about reducing competition or the economic upheaval from the coronavirus pandemic, the companies have indicated they remain committed to the merger, which, if approved, could be completed next year.
