PSA Peugeot Citroen may sell 7% share to GM, insiders revealed

Article by Christian A., on February 28, 2012

PSA Peugeot Citroen may sell around 7% share in the Paris-based carmaker to General Motors Co. as part of a development alliance, according to Bloomberg citing insiders who have knowledge of the situation. The company may announce the plans for the sale as soon as this week, the insiders disclosed. 

The transaction would include a standstill agreement wherein GM would not have a greater holding in the French automaker without permission, according to the insiders who requested anonymity due to the confidentiality of the discussions. They further disclosed that Peugeot may present additional stocks through a rights issue in line with the transaction.

In a different report, Reuters cited sources who stated that GM may purchase a share of no greater than 5%. An alliance of Peugeot and GM may include manufacturing engines and vehicles together in the region, according to an individual who is familiar with the matter. GM spokesperson Klaus-Peter Martin declined to make a comment.

Peugeot spokesperson Jonathan Goodman declined to comment, too. GM is seeking to turn around its Opel brand, which is running at a loss. Meanwhile, Peugeot is looking for ways to stem an increasing debt load. Last year, the European sales of Peugeot dropped by 8.8% to 1.68 million units.

On the other hand, GM's sales declined 1.9% to 1.17 million units. Vehicle executives anticipate deliveries in Europe to drop in 2012, which would be the fifth year that this happened. There was no final agreement reached regarding the alliance, the insider disclosed, adding that the size of the share could change.

Philippe Varin, Peugeot's chief executive office, revealed this month that the company was agreeable to the study of partnerships as long as they are in accordance with the group's strategy. These include the expansion outside the European region as well as contributed synergies while protecting the company's independence.

Topics: psa, peugeot, citroen, gm, shares

If you liked the article, share on:

Comments

Recommended

During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
How fast can a 2017 Chevrolet Camaro ZL1 actually go? Considering the amount of power lurking underneath its line-laden bonnet, the 2017 Camaro ZL1 is capable of achieving a top...
by - February 23, 2017
As it turned out, we’ll be seeing Toyota’s new super supermini at the 2017 Geneva Motor Show in March. It’s time we all get to meet the new Toyota Yaris...
by - February 23, 2017
Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries