Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

France Says Peugeot Stake Deal Gets Initial EU Backing

Feb. 20 (Bloomberg) -- PSA Peugeot Citroen, Europe’s second-biggest carmaker, got initial regional regulatory backing on its agreement to sell a stake to its home government, a French official said.

French Finance Minister Pierre Moscovici received a letter from European Competition Commissioner Joaquin Almunia, who indicated that the proposal “at first glance” complies with European Union rules related to state aid, a ministry spokeswoman, commenting on condition of anonymity in line with government rules, said by phone.

Peugeot outlined plans yesterday for a 3 billion-euro ($4.11 billion) capital increase in which Chinese partner Dongfeng Motor Corp. and the French state will contribute about half the money in exchange for stakes of 14 percent apiece. The new funding will help the Paris-based manufacturer to overhaul its lineup, invest outside Europe and reduce debt.

Earlier financial backing for the carmaker includes a 7 billion-euro French government guarantee of new bonds issued by the company’s Banque PSA Finance car-loan unit. EU authorities have approved the guarantee.

French newspaper Les Echos reported on Almunia’s letter in its online edition late yesterday. Antoine Colombani, a spokesman for the European Commission in Brussels, didn’t immediately respond today to a call and an e-mail seeking comment.

To contact the reporter on this story: Mathieu Rosemain in Paris at mrosemain@bloomberg.net

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.