Dongfeng Motor investigating possibility of buying 20% stake in PSA, mandates a bank to work on proposal
Dongfeng Motor [Dong Feng Qi Che], the Hubei-based Chinese auto maker, is in the preliminary stage of investigating the possibility of buying a 20% stake in French peer PSA Peugeot-Citroen, the Chinese-language China Business News reported.
The item cited an unidentified Dongfeng Motor source who said the company has mandated an investment bank to help work on the deal plan. The report also said that Dongfeng Motor and French government will each invest around EUR 1.5bn (CNY 12.4bn) to acquire a 20% and a 30% stake in PSA and the talks are being held by and between a French delegation and Dongfeng Motor.
Source China Business News