Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

PSA Peugeot Citroen is close to agreement on investment by China's Dongfeng Motor

In this Nov. 21, 2013 photo, a Dongfeng-Nissan Venucia e30 is presented the Guangzhou Auto Show. THE CANADIAN PRESS/AP, Kin Cheung

Enlarge Image

In this Nov. 21, 2013 photo, a Dongfeng-Nissan Venucia e30 is presented the Guangzhou Auto Show. THE CANADIAN PRESS/AP, Kin Cheung

PARIS - Out with General Motors Co., in with China's No. 2 automaker: PSA Peugeot Citroen is moving closer to a partnership with Dongfeng Motor.

Spokeswoman Antonia Krpina at the capital-hungry French automaker said Monday its supervisory board has reached "cohesion" in talks announced last month involving Dongfeng. She declined further comment, saying no deal has been signed yet.

In a statement later, Peugeot Citreon said negotiations are ongoing and it expects to make an announcement next month at its annual earnings presentation.

Peugeot Citroen said its "privileged scenario" foresees a capital increase of around 3 billion euros ($4.1 billion). The deal also could see the French government take a matching stake in the company alongside Dongfeng.

Last month, Detroit giant GM said it had decided to unload its 7 per cent stake in the struggling French company, without disclosing a price, while maintaining their alliance.

Many acquisitions and corporate partnerships abroad by Chinese companies aim to improve their competitive edge in their fast-growing home market. A Peugeot tie-up would give Dongfeng access to a well-known brand and advanced technology to help expand its share of the world's biggest auto market.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Submit a Random Act of Kindness
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates