The PSA group has secured EU antitrust approval to acquire General Motors’ European division Opel and Vauxhall.
The European Commission concluded the deal did not pose any competition concern, Reuters reports.
PSA strategy director Patrice Lucas described the decision as “an important step” and said that the companies’ teams are now concentrating on fulfilling other conditions necessary to close the deal, expected before the end of the year.
The terms of sale between GM and the PSA Group, which manufactures Citroën, Peugeot and DS-branded vehicles, were finalised on March 7 after weeks of negotiations.
The European company was valued at $3.4 billion, and the acquisition of Opel/Vauxhall gives PSA a 17 per cent share of the auto industry in Europe.
The merger means research and development and manufacturing costs will be slashed for the struggling German car maker, and PSA expects the Opel/Vauxhall division will reach a two per cent operating margin by 2020.
The Holden brand, also owned by GM, was not part of the sale. PSA has said the existing supply agreements between the Australian marque and Opel, who manufactures the Holden Astra and will begin manufacturing the Commodore from early 2018, will continue.