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EU clears Daimler-Geely's Smart electric car JV

The European Commission has cleared Daimler AG and Zhejiang Geely Holding Group Co. Ltd.'s 50/50 electric car joint venture under the Smart brand, the European Union's executive arm said Dec. 11.

The EU's approval came nearly nine months after Germany's Daimler sold 50% of its stake in its Smart brand of electric cars to China's Geely, paving the way for the creation of the joint venture. The two companies will commence sales of the new generation of Smart cars in 2022.

In its decision, the EC said it concluded that the joint venture would raise no competition concerns as the overlap between the activities of Geely and Daimler are limited. The commission added that a number of carmakers offering the same product would remain in the market after the establishment of the joint venture.