General Motors has announced that it is selling its remaining seven-percent stake in PSA Peugeot Citroen today.
The seven-percent stake equates to 24,839,429 shares of the French automaker and the sale will take place through a private placement to institutional investors. The American automaker acquired the stake in PSA Peugeot Citroen when it entered into a strategic alliance in 2012 with the French automaker.
SEE ALSO: PSA and Dongfeng Agree to Alliance
The news comes as PSA and Chinese automaker Dongfeng agree to an alliance that is backed by a $4.1 to $5.5 billion capital injection for Peugeot. The original partnership between GM and PSA Peugeot Citroen saw both automakers planning to share vehicle platforms, components and modules to create a global purchasing joint venture to improve both groups’ leverage in sourcing goods and services from suppliers.
“Our equity stake was planned to support PSA in their efforts to raise capital at the time of the creation of the GM and PSA alliance, and that support is no longer needed,” said GM Vice Chairman Steve Girsky. “The alliance remains strong with our focus on joint vehicle programs, cross manufacturing, purchasing, and logistics. We’re making good progress while remaining open to new opportunities.”