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Dongfeng Deal with PSA Moving Forward to be Finalized

The French government would also take a stake in the company

The deal between PSA and Dongfeng is close to being finalized

The deal between PSA PeugeotPeugeotFrance, 1882 > present120 models
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is moving forward with its deal with Chinese automaker Dongfeng. The Financial Times reports that Dongfeng will pay between €3 and €4 billion ($4.0 billion to $5.5 billion) to take a portion of the company.

Dongfeng is already PSA’s joint venture partner in China. After Dongfeng takes a larger stake in PSA, the plan is for PSA to offer Dongfeng-built cars in other Southeast Asian markets

A separate part of the deal would also have the French government take a significant stake in PSA.

The first news about the deal emerged when the China Business News reported that Dongfeng would buy 30% of PSA for around $1.6 billion. Since then, they have been negotiating, and it appears that Dongfeng may pay more for a stake in the company.