Peugeot CEO says merger with Fiat Chrysler on track

PARIS (Reuters) – Peugeot maker PSA’s boss Carlos Tavares said on Thursday he was confident the merger of the French carmaker and Fiat Chrysler (FCA) would go ahead as planned and yield synergies of at least 3.7 billion euros ($4.2 billion).

“The timetable of the merger with FCA is being strictly respected,” Tavares told PSA’s annual shareholders meeting.

He added he was confident the deal would be finalised during the first quarter 2021 “at the latest”.

Commenting on expected synergies from the deal, he said 3.7 billion euros was a “floor”.

Last week, European Union antitrust regulators opened a four-month investigation into the proposed $50 billion merger, saying it may harm competition in small vans in 14 EU countries and Britain.

The two carmakers had declined to offer concessions to allay the EU competition enforcer’s concerns during its preliminary review of the deal.

The deal has already received the green light in the United States, China, Japan and Russia.

($1 = 0.8906 euros)

(Reporting by Dominique Vidalon; Editing by Mark Potter)