The European Antitrust has therefore highlighted the problem for the two groups that will have to find a solution in the near future, in order to receive the definitive ok to the merger which, remember, should end in the course of first quarter of 2021 and no longer by the end of 2020 precisely because of the commercial vehicle issue.
In these hours the hypothesis of a transfer of the commercial vehicle business from FCA to Cnh Industrial, a company controlled by Exor that is experiencing many difficulties in this moment of crisis (with some Italian plants at risk of closure). This solution would entail the transfer of Fiat Professional to CNH, currently present in the commercial vehicle sector with the Iveco Daily brand which has less than 10% of the market share in Europe.
FCA could carry out a spin-off of Fiat Professional with a subsequent transfer to CNH Industrial, thus collecting the indications received from the European Authorities. The rumors of these days have generated a substantial growth in the value of the shares of FCA and Exor with several analysts who believe this solution is plausible.
According to Equita analysts “in the absence of comments from the competent authorities (given that Exor is a controlling or co-controlling shareholder of both CNH and the future FCA-PSA) we believe it may be a solution. We remain of the idea that the FCA-PSA merger is not at risk for the findings of the European antitrust: both Tavares and Manley have always declared that the necessary measures will be taken not to compromise the deal “
The Antitrust checks on the merger between FCA and PSA will continue until October. In the meantime, considering the current state of the market, after the merger, the new group would reach about a third of the sales of commercial vehicles in the EU. In Italy, however, the new group would exceed 50%.
More details on the matter could arrive already in the next month of July when, towards the end of the month, FCA will release the data relating to the second quarterly of 2020. Certainly the company intends to evaluate all the possibilities to speed up the procedure of merger with PSA over the next few months. Keep following us to find out more.