Fiat gets EU approval to buy Chrysler

• Source: Xinhua
• [12:14 July 25 2009]
• Comments

Italian car maker Fiat won approval from the European Commission on Friday to buy its US peer Chrysler.

The Commission, the European Union (EU)'s antitrust watchdog, said in a statement that the transaction would not significantly impede effective competition.

Fiat struck a deal last month to buy Chrysler after the US automaker ran into trouble amid the financial and economic crisis.

Chrysler produces and sells cars and trucks under the brand names Chrysler, Jeep and Dodge. It has no manufacturing facilities of its own in the EU.

Fiat is a diversified Italian industrial group engaged principally in the manufacture and sale of passenger cars, agricultural and construction equipment, trucks and industrial vehicles.

Hard hit by the financial and economic crisis, Chrysler filed for protection from its creditors under US bankruptcy rules at the end of April and announced plans for a global strategic alliance with Fiat.

Fiat has acquired an initial 20-percent equity interest in Chrysler and entered into a number of agreements with the company to provide it with access to certain Fiat technology, platforms and power trains.

Despite Fiat's stake of only 20 percent in Chrysler, which it may increase in future, Fiat holds rights in the decision-making process of Chrysler that will enable it to exercise sole control over Chrysler.