WASHINGTON (Reuters) -- Chrysler LLC's planned alliance with Italy's Fiat S.p.A. poses no competitive issues, the U.S. Federal Trade Commission said today.
Chrysler filed for bankruptcy on April 30 and also agreed to an alliance with Fiat, in which the Italian carmaker will have an initial stake of 20 percent.
The deal will allow Fiat to own up to 35 percent as it makes investments in U.S. operations and small-car technology for Chrysler. Fiat could eventually own 51 percent after Chrysler repays loans to the U.S. government.
Norman Armstrong, acting deputy director of the FTC's Bureau of Competition, said in a statement that the agency would not object to the Chrysler-Fiat deal.