Peugeot family aims to quickly raise PSA-Fiat Chrysler stake

Europe

PARIS — The Peugeot family aims to increase its holding as soon as possible in the new automaker resulting from the merger of PSA Group and Fiat Chrysler Automobiles.

The Peugeot family will own a 6.2 percent stake in the merged company.

PSA and Fiat Chrysler reached a binding agreement last month on a $50 billion tie-up that will create the world’s No. 4 carmaker after the deal is completed in 12 to 15 months.

Under the terms of the deal, the Peugeot family can increase its shareholding by up to 2.5 percent only by acquiring shares from French state investment bank Bpifrance Participations and China’s Dongfeng Motors, which are both also PSA shareholders.

Asked by regional French newspaper L’Est Republicain if raising the stake was a major objective, Jean-Philippe Peugeot, who heads the family’s Etablissements Peugeot Freres holding company, replied that it was.

“There was a complex negotiation in order to obtain this possibility. It wasn’t necessarily a foregone conclusion. Once the merger is complete, my family will give favorable signals,” Peugeot told the newspaper.

A PSA spokesman said Peugeot’s remarks were “in line with what had been indicated” when the deal signed. FCA declined to comment.

Peugeot also said that he expected the French state, represented through Bpifrance, to eventually exit the new company.

“I think that it is not meant to be there forever. It will undoubtedly remain long enough to make sure that (French) jobs are safe over time,” he said.

He said it was unlikely that Dongfeng would totally sell out of the new group even though it plans to reduce its shares in PSA.

“Partially, perhaps, but I don’t think all of it. Sure, PSA’s business in China has not met our expectations, but for Dongfeng it’s a minor issue when you look at China’s long history,” he said.

Dongfeng has a 12.2 percent equity stake in PSA, and would have about half of that in the combined entity formed by FCA and PSA.

The Chinese automaker is looking to reduce its holding in the merged company to help get the deal get past U.S. regulators amid trade tensions between Washington and Beijing, sources told Reuters.

Products You May Like

Articles You May Like

2020 Kia Telluride S Long-Term Arrival: SUV of the Year, For a Year!
Quick Charge Podcast: January 15, 2020
Jeep’s Japan results show Detroit it’s not impossible
Hyundai teases Boston-centric Super Bowl ad
Hyundai, Kia invest $110 million in UK electric van startup Arrival

Leave a Reply

Your email address will not be published. Required fields are marked *