Fca: shock session. Why so many sells? Here are the market fears

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A session to forget that today also for FCA who lost ground for the third day in a row, today with a more pronounced violence than the previous two sessions.

Fca dive with volume boom

Already yesterday the stock had been hit by strong sales, yielding almost 3% of its value, but today it went even worse.
In fact, FCA ended trading at € 8.077, with a 7.7% sinking and over 23 million shares transited on the market on a daily basis, almost double the average of the last 30 days.

The stock continues to remain in the sights of the bears not only for the negative intonation of the market, but also for fears related to the future of the merger between FCA and PSA.

FCA: rumors weigh on antitrust investigation for LCV segment

Two days ago rumors have already circulated about a preliminary risk in the LCV segment in Europe.
According to rumors reported by Reuters, the European antitrust has asked FCA-PSA for clarifications for the LCV segment, that is, light commercial vehicles.

According to reports from various press sources in the last few hours, the European Antitrust Authority would intend to request an investigation into the risk of concentration in the mini van sector.

FCA: What are the risks for merging with PSA?

If this were the case, as reported by Equita SIM in a note, the timing of the deal between FCA and PSA would be extended by about four months, moving the closing from the first to the second quarter of next year.

Knowing that the CEO of Psa, Tavares, and that of FCA, Manley, have always said that they would do anything to get to solve the problems raised by the antitrust, analysts of the Milanese SIM believe that it is only a matter of lengthening of the times, while they see no risks for the merger.

Equita SIM does not change its view on FCA, reiterating the “buy” recommendation, with a target price of 10 euros.

FCA rejected by Banca Akros

Instead, the indication coming from Banca Akros, whose analysts today revised the rating on the stock, reduced it from “buy” to “accumulated”, with a target price unchanged at 10 euro.

For analysts it seems that FCA and PSA will face a longer investigation by the European antitrust, after the two companies have not proposed remedies to ease the fears of the merger authority.

FCA: longer times for the deal. What are the possible solutions?

As already highlighted by Equita SIM, Banca Akros analysts also expect the risk of an extension of the times relating to the deal between FCA and PSA.

According to Banca Akros, a possible solution to overcome the antitrust findings would be that of a sale by Fca of 38% in Tofas, a Turkish subsidiary that produces light vehicles, or the sale of Sevel, the joint venture between Fca and psa.

Banca Akros also believes that the merger between the two groups is not jeopardized by antitrust moves.

Analysts, however, judge the news negatively because it generates uncertainty about the investment case and this has led them to review their strategy on FCA from “buy” to “accumulated”.



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