Deals
Dongfeng Motor to Buy Stake in Peugeot for 800 Million Euros
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Dongfeng Motor Group Co. agreed to pay 800 million euros ($1.1 billion) for a stake in PSA Peugeot Citroen in the biggest overseas acquisition by a Chinese automaker since Zhejiang Geely Holding Group Co. bought Volvo Cars in 2010.
Dongfeng will buy 524 million euros of Peugeot shares at 7.50 euros apiece and the rest through a rights issue, with the French government expected to do the same, the Wuhan, China-based company said in an exchange filing today. The deal will give Dongfeng and the French government holdings of 14 percent apiece, while the Peugeot family’s stake will be diluted to 14 percent from the current 25.5 percent, a person familiar with the matter said before the announcement.