BRUSSELS, Belgium (AP) -- European Union antitrust authorities Monday announced they have cleared Ford Motor Co.'s $6.45 billion purchase of the passenger car division of Swedish automaker Volvo AB.
In a statement, the European Commission said there is overlap between the two companies in the executive and sports car sectors. However it said the overlap was small and the strength of competitors meant the operation will not create an unfairly dominant position."The position of other well-established competitors such as BMW and General Motors remains unaffected," the Commission said. "These competitors will be able to limit the effect of the concentration.
The statement said Ford-Volvo's share of the passenger car market within the European Economic Area will not exceed 15 percent. The EEA comprises the 15 EU nations plus Norway, Iceland and Liechtenstein.
"The merger is not likely to increase entry barriers in the passenger car market or any distinct part of it," the Commission added.
The deal announced in January combines Ford, the world's second-largest automaker with Volvo, ranked 22nd. Ford employs about 364,000 people worldwide, Volvo 80,000.
Volvo shareholders approved the deal March 8 at the company's headquarters in Goteborg, Sweden.