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U.S. will review Fiat-Peugeot deal over China ties, Kudlow says

David McLaughlin

The Trump administration intends to review the proposed merger of Fiat Chrysler Automobiles NV and France’s PSA Group because the deal would give a Chinese carmaker a stake in the combined company, U.S. economic adviser Larry Kudlow said.

“With respect to the Chinese angle, we will take a very careful look at it,” Kudlow said Friday on Bloomberg Television.

A Peugeot logo pictured on a car in Bayonne, southwestern France, Thursday, Oct.31, 2019.

China’s Dongfeng Motor Corp. owns 12% of Peugeot parent PSA, which this week agreed to a tie-up with Italian-American automaker Fiat. The merger would create the world’s fourth-largest car company.

The deal comes amid heightened concern by the U.S. over Chinese investment in American companies. Last year, Trump signed new legislation that toughens national security reviews of foreign investments in U.S. companies, a measure seen as primarily directed at Chinese buyers.

“With respect to the Chinese story, we obviously are alert and on guard,” Kudlow said. “We have to make sure that whatever China business developments occur do not occur to the detriment of not only of our economy but our own national security.”