Markets News

Peugeot Family Intends to Raise Current 6.2% Fiat Chrysler Stake to Over 8%

Peugeot Family Intends to Raise Current 6.2% Fiat Chrysler Stake to Over 8%

The Peugeot family, which will hold a 6.2% stake in the new car manufacturer originating from PSA and Fiat Chrysler’s alliance, aims to increase its holding as soon as possible, a consultant stated in a newspaper interview.

PSA and Fiat Chrysler reached a binding agreement in December on a $50 billion alliance that will create the world’s No. 4 car manufacturer after the deal is completed in 12-15 months.

Under the terms of the agreement, the Peugeot family can increase its shareholding by as much as 2.5% only by acquiring shares from French state investment bank Bpifrance Participations and China’s Dongfeng Motors, that are each also PSA shareholders.

Asked by regional French newspaper if raising the stake was a serious objective, Jean-Philippe Peugeot, who leads the family’s Etablissements Peugeot Freres holding firm, said that it was.

A PSA spokesperson said Peugeot’s remarks had been “in line with what had been registered” when the deal inked. FCA declined to remark.

Peugeot additionally mentioned that he anticipated the French state, represented via Bpifrance, to ultimately exit the brand new venture.

Nevertheless, he further said that it was unlikely that Dongfeng would promote out of the brand new group even though it intends to reduce its shares in PSA.

About the author

Avatar

Winifred Gerald

Add Comment

Click here to post a comment