PSA Peugeot Citroen will remain a French firm: industry minister
ReutersPARIS--PSA Peugeot Citroen will remain French, Industry Minister Arnaud Montebourg said on Tuesday, days after sources said the loss-making firm was in talks with China's Dongfeng and the French government over a capital increase.
October 23, 2013, 12:08 am TWN
Peugeot is eyeing a possible deal under which China's state-owned Dongfeng Motor Co. Ltd. and the French government could each contribute 1.5 billion euros and acquire 20 to 30 percent of the carmaker, sources close to the matter have said.
Under such a plan, the Peugeot family would lose control of the company because the cash injection would dilute its 25.4 percent stake and 38.1 percent in voting rights.
GM scaled back cooperation with Peugeot months into their alliance and later turned down a government-backed merger, people familiar with the matter said.