Peugeot PSA Citroen will get a three-billion Euro injection backed in part by Chinese stakeholder Dongfeng.
Dongfeng has agreed to contribute $1.1 billion for a stake in the French automaker and the deal will end over two centuries of effective control by the Peugeot family. In addition, the French government will also invest $1.1 billion and each party will receive 14 percent stake. The Peugeot family’s stake will also be at 14 percent and the deal is likely to be formally signed by March.
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As a result of the deal, Dongfeng is expected to promote the Peugeot brand in the fast-growing Asian auto markets while an increase in production and a new research and development center are also a possibility. The venture hopes to achieve the objective of selling 1.5 million vehicles under the Dongfeng, Peugeot SA and Citroen brands annually starting in 2020.
[Source: The Associated Press]
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