Santander would pay cash for a portfolio of loans from
Banque PSA Finance, and the two would create a sales financing
network together, said one of the people, who asked not to be
identified because the talks are private. The companies aim to
announce the agreement next week, the people said.
The banking deal would come on top of a 3 billion-euro
($4.11 billion) stock-sale plan that Peugeot is negotiating with
France and Dongfeng Motor Corp., the automaker’s current partner
in China. The French manufacturer said last week that its board
aims to vote on the capital increase on Feb. 18.
Europe’s second-largest automaker has burned through more
than 4 billion euros in cash in the last two years as deliveries
fell amid slumping demand in its home region. The new funding
would help Peugeot pay for the development of new models and
expand in growing markets such as China.
Representatives for Peugeot and Santander declined to
comment on the possible deal. Reuters earlier reported on the