Peugeot looking to raise €3B

PSA Peugeot Citroen (PEUGF) is in talks with Chinese partner Dongfeng Motor and the French state over raising €3B ($4.1B) so it can invest in new models and growth markets, the struggling carmaker said yesterday.

Dongfeng and France would provide at least €750M each in exchange for 14% apiece, Bloomberg reports. Peugeot's controlling family would invest €100M in order to retain a stake of 14% vs 25.5% currently. However, the family is divided over whether to accept the deal.

The company would also hold a rights issue of €1.4B.

Peugot hopes to a seal the agreement by February 19, when it is due to disclose its annual earnings. The deal would mark a shift away from its not overly successful partnership with GM.

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Comments (1)
  • Tales From The Future
    , contributor
    Comments (7743) | Send Message
    This company has one giant problem outside of its control: Slow car sales in Europe.


    PSA forgot about distribution into other markets, it had no geo diversification outside of Europe until recently. Too little, too late given the long crisis in Europe.


    Fiat had the Chrysler card to play to get out of its Euro jail, PSA didn't have that.


    I imagine the Chinese taking over long-term at PSA or rather what will be left of PSA by then (the French state won't be happy about foreign control...on the other hand, the French taxpayer will not be happy to fund/bail-out PSA again and again either)
    21 Jan 2014, 04:16 AM Reply Like
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