Deals
Dongfeng Is Poised to Sell Down Stake in Peugeot Maker
- Chinese company selling stake as part of PSA-Fiat deal
- Dongfeng’s stake in combined Fiat-PSA set to be below 5%
Photographer: Tomohiro Ohsumi/Bloomberg
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PSA Group’s Chinese shareholder is poised to sell some of its 12% stake in the Peugeot manufacturer as part of the carmaker’s planned merger with Fiat Chrysler Automobiles NV, according to people familiar with the matter.
The buyer of shares owned by Dongfeng Motor Corp. will be PSA, and the Chinese company’s stake in the combined Fiat-PSA is dropping to 4.5%, the people said, who asked not to be named because the information isn’t public. The sale could lead to the dismantling of Dongfeng and PSA’s joint venture in China, one person said.