Opel CAR – Photo by L.Willms
(BRUSSELS) – The European Commission gave its unconditional approval to the acquisition of Opel by Peugeot Wednesday, concluding that the transaction raised no competition concerns in the relevant markets.
With PSA and Opel both active in the manufacture of passenger vehicles and light commercial vehicles, the Commission had to look at the impact of the transaction on the automobile markets at both European and national level.
The Commission also had to consider the overlapping activities of the two companies in the wholesale and retail sale of passenger vehicles and light commercial vehicles.
The Commission’s investigation found that:
- With regard to the manufacture and sale of motor vehicles, the combined market shares of the two companies are relatively small in all the relevant markets. The companies achieve a combined market share of more than 40% in only two national markets (Estonia and Portugal) for small commercial vehicles, but with an increase of less than 5% in both those markets. In the other affected markets, the market shares remain small. The Commission investigation also showed that the merged entity will still face strong competition from manufacturers such as Renault, Volkswagen, Daimler, Ford, Fiat and various Asian competitors.
- With regard to the wholesale and retail distribution markets, the Commission ruled out the possibility that the transaction might have a detrimental effect because of the different distribution channels used by PSA and Opel and the presence of independent distributors, importers and retailers.
The Commission;s conclusion was that the transaction was unlikely to raise competition concerns in the relevant markets.#
The companies
Peugeot S.A. makes and sells passenger vehicles and light commercial vehicles worldwide under the brand names Peugeot, Citroën and DS.
Opel, currently controlled by General Motors, brings together General Motors’ European automobile business under the brand names Opel and Vauxhall. Opel makes and sells passenger vehicles and light commercial vehicles.
Following notification of the transaction to the Commission on 30 May 2017, the EU executive’s duty is to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.
A non-confidential version of this decision is available on the Commission’s competition website, in the public case register under the case number M.8449.
