Following exclusive negotiations entered into on 19 February, PSA Peugeot Citroën and Banque PSA Finance have announced the signing of a binding Framework Agreement with Santander Consumer Finance (Santander CF), the consumer finance division of Banco Santander, which will establish a partnership between the two groups in 11 countries. The relevant PSA Peugeot Citroën and Banque PSA works councils issued a favourable opinion on the transaction.
The partnership between Banque PSA Finance, the auto finance company of PSA Peugeot Citroën, and Santander CF, will take the form of dedicated local partnerships in most countries, or, in some jurisdictions, of commercial agreements.
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This partnership is subject to the approval of competent competition authorities as well as the banking regulatory authorities in the main European countries. The closing of the 11 transactions would then be expected to occur in the course of 2015 and in early 2016. The contemplated scope of the transaction would cover approximately 90% of Banque PSA Finance’s current activities. The partnership would enhance commercial capabilities for PSA Peugeot Citroën’s brands enabling them to increase their penetration of the car finance market. It would also create a sustainable and dynamic captive financing activity with competitive offers dedicated to PSA Peugeot Citroën’s brands and customers. By 2018, this partnership should result in a positive cash impact of up to EUR1.5bn (US$2.04bn) for PSA Peugeot Citroën.
Jean-Baptiste de Chatillon, finance director of PSA Peugeot Citroën and president of Banque PSA Finance, said, “I am pleased to confirm this partnership with Santander Consumer Finance, the European leader of consumer finance. It will boost the competitiveness in Europe of our brands, Peugeot, Citroën and DS.”
