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Peugeot to Sell 75% Gefco Stake to 800 Million Euros

PSA Peugeot Citroen, Europe’s second-biggest carmaker, agreed to sell 75 percent of the Gefco trucking unit to OAO Russian Railways for 800 million euros ($1.04 billion) to help reduce debt.

Peugeot will also receive a special dividend of 100 million euros from Gefco as part of the deal, the Paris-based company said in a statement today. Final agreement with the state-owned Russian company is still dependent on regulatory approval, and the two sides aim to close the deal by the end of the year, Jean-Baptiste Mounier, a Peugeot spokesman, said.