Deals
China Dongfeng Motor Said to Weigh Options for Peugeot Stake
- Chinese firm reviews 12.2% holding in Peugeot owner PSA Group
- Full or partial sale of $2.5 billion stake being considered
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Dongfeng Motor Corp. is exploring options for its $2.5 billion stake in Peugeot owner PSA Group including a potential divestment, people with knowledge of the matter said, as the companies grapple with a global slowdown in the automotive market.
The Chinese state-owned manufacturer held talks in recent weeks with potential advisers about ways to monetize part or all of its 12.2% stake in the French carmaker, according to the people. As part of the strategic review, Dongfeng Motor has discussed possible transactions including a straight sale of PSA shares or issuing exchangeable bonds backed by PSA stock, they said.