Mubasher: The Italian-US automaker Fiat Chrysler Automobiles (FCA) and its French rival PSA have obtained the European Commission’s approval for their $38 billion planned merger, Reuters reported on Monday.

The merged entity, which will be called Stellantis, is expected to be the world's fourth-largest carmaker, following Volkswagen, Renault-Nissan-Mitsubishi, and Toyota.

In order to address the EU concerns about the high market share in small vans, PSA will extend its small van deal with Toyota Motor by raising capacity for Toyota and reducing transfer prices for the vehicles, spare parts, and accessories.

“Access to a competitive market for small commercial vans is important for many self-employed and small and medium companies throughout Europe,” European Competition Commissioner Margrethe Vestager said in a statement.

The merger deal is projected to close by the end of the first quarter of 2021.

PSA is the parent of Peugeot, Citroën, Opel, and DS, while FCA’s portfolio includes Chrysler, Dodge, Jeep, Ram, Fiat, Alfa Romeo, and Maserati.