European Commission (EC) officials have written to the French government outlining the rules of State aid following this week’s injection by Paris of EUR800m (US$1.1bn) into PSA Peugeot Citroen, but see no infringement in the deal.
France is to become a 14% shareholder in PSA, along with Chinese automaker, Dongfeng, which will also pump in EUR800m, with the total capital increase worth EUR3bn.
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“If a State intervenes on the same terms and at the same time as another investor, then the intervention of the State does not constitute State aid in the meaning of the European Union rules,” a Competition Directorate spokesman told just-auto from Brussels.
“This is not something the Commission has to look at. The State is acting as a private investor would and therefore there is no advantage and there is no State aid.
“We have provided a letter simply restating the rules. So if the rules are complied with, there is no State concern.”
The capital increase is subject to administrative and regulatory approvals by French and Chinese authorities and has to be approved by an extraordinary general meeting of PSA shareholders.
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By GlobalData“This is a major strategic operation for the PSA Group, with which the State is associating itself for the long term,” said French Prime Minister, Jean-Marc Ayrault.
“It’s also an act of State responsibility in relation to one of the main industries in the country.
“It is to the benefit of activity and jobs in France.”
