The Impact of Cross-Border M&As on the Competitive Position of International Automotive Companies Globally and on the Participants’ Markets: The Case of PSA and FCA in France and Italy

International automotive companies have been using cross-border M&As as a growth strategy for a long time. Due to the negative trends in the development of the international automotive industry in recent years, including chronic overcapacity, unstable demand, increased competition and the need for significant investments in the development of new technologies, the use of cross-border M&As has become especially important for international automakers in order to increase their competitive position. Nevertheless, the question remains whether cross-border M&As enhance the competitive position of international automotive companies both globally and in the participants’ markets. This paper aims to identify the impact of the cross-border M&A between Peugeot Société Anonyme (PSA) and Fiat Chrysler Automobiles (FCA) on the companies' competitive position globally, as well as in France and Italy respectively. Using such methods as market share analysis and financial analysis, the paper compares the financial and operational results of PSA and FCA before the transaction and of the combined entity Stellantis company after the transaction. In order to deepen the assessment of the impact of the transaction on the external competitive position of the companies, the results of PSA and FCA (then combined into Stellantis) are also compared with the results of the main competitors in each of the considered markets. As a result of the study of financial reports, statistical resources and media materials, the authors conclude that the cross-border merger between PSA and FCA has had a significant positive impact on the competitive position of companies globally, both in terms of market share growth and in terms of increased profitability and liquidity of companies. At the same time, the cross-border merger did not have a significant impact on PSA's competitive position in France and had a limited positive impact on FCA's competitive position in Italy. This research can be used by international automotive companies considering cross-border M&As as a growth strategy in order to improve their competitive position.