The PSA Group and Fiat Chrysler Automobiles have secured European Union antitrust approval for a merger valued at some $38 billion, after they managed to overcome concerns about completion in the light commercial vehicle sector.

The EU was concerned that combined FCA and PSA would control some 34% of the European van market. However, PSA managed to overcome this by offering to increase production capacity for Toyota at its Sevelnord plant in France as well as supplying Toyota with the compact Proace City van, including an electric version.

The merger will create the world’s 4th largest car maker, with brands including; Fiat, Jeep, Alfa, Dodge, Ram, Maserati, Peugeot, Citroen, Opel and DS. However, it is still subject to share holder approval in January. If approved the new group will be called STELLANTIS.