That’s really huge news for the automotive industry: yesterday the Chinese car manufacturer Dongfeng concluded a deal thanks to which it has become the principal shareholder of PSA (which encompasses both Peugeot and Citroen) together with the French Government and the Peugeot family. With this operation China shows us that it is rich enough to get his hands on the european car market and on one of its biggest companies. If jointly considered, PSA and Dongfeng Motors would make in the list of the 10 biggest automaker by production.
The Peugeot family used to control 38% of the shares (and hold 24% itself), with the remaining shares floated.Now it will have a 14% stake, as will the French state and Dongfeng, a state-controlled car company. The two new investors will put in €800m ($1.1 billion) each and existing shareholders will cough up the rest of a €3 billion capital increase.
Read the whole story on the Economist.