PSA Peugeot Citroen Chinese partner, Dongfeng, could take around a 10% stake in the French automaker according to one German analyst, as speculation mounts a deal is imminent.
The French manufacturer confirmed this morning (12 December) it was in talks with “various partners,” including Dongfeng that could yield a capital increase although no further detail is as yet forthcoming.
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“I would say it is probably coming out to be [a] rather small stake – this is just a best guess maybe 10% or so,” Metzler Bank automotive analyst Juergen Pieper told just-auto from Germany.”
PSA said it was “reviewing” potential industrial and commercial development projects to include Dongfeng, with reports also circulating the French government could participate in any financial involvement.
“I would say…slightly higher than [a] 50% [French government participation] chance,” said Pieper.
Previous speculation has centred on a figure of up to US$4bn being raised, although the Metzler Bank analyst preferred to highlight a number of around US$2.6bn.
“There is no agreement on the terms of a potential transaction,” said PSA. “These discussions are at a preliminary stage and no assurance can be given regarding their outcome.
“PSA will keep the market informed in due course of the outcome of these discussions.”
Other reports indicate France and Dongfeng could take matching 20% stakes.
