EU regulators have given the go-ahead for the proposed joint venture between French banking group Credit Agricole and Fiat Auto, a subsidiary of the Italian Fiat Group. The approval follows an investigation into the operation and concluded that it would not significantly impede effective competition in the European Economic Area.
Under the terms of the deal, Fiat Auto and Credit Agricole will acquire joint control over Fidis Retail, a company engaged in car purchase financing for consumers. Subsequently, the Fiat Group will transfer all of its subsidiaries active in car purchase financing to Fidis Retail, which will be renamed Fiat Auto Financial Services (FAFS).
Currently, the parties have overlapping business in various countries including France, Germany and Italy. The proposal, however, is not expected to give rise to any horizontal concerns within the European Economic Area, with the exception of the French and Greek markets for consumer car purchase financing. In addition, the proposed operation is expected to affect several vertical markets, in particular Italy.
The proposed joint venture agreement was first announced in July 2006 and was estimated to value up to E2 billion.