European Union approves PSA’s stake sale to French state image

According to a spokesperson for the European Commission, EU’s state aid chief Joaquin Almunia has said EU rules have been followed for the planned PSA Peugeot Citroen share sale to the French government.

Almunia’s spokesman Antoine Colombani agreed that EU’s state aid chief sent a letter to French Finance Minister Pierre Moscovici in which he told him that PSA’s deal seems to comply with EU rules at first notice. Of course, this would be a small step in the proceedings for the deal to complete, but in any case EU’s support is fundamental if the agreement is to come true.

PSA Peugeot Citroen, Europe’s biggest automaker behind Volkswagen, is struggling to cope with huge losses – it posted for the second year in a row in 2013 billions in profit decline – through a cash gathering deal that would see it get 3 billion euros from China’s Dongfeng Motors and the French state.

Ending two centuries of Peugeot family control, the Chinese automaker and the French government would each inject 800 million euros for a 14 % piece in the ailing carmaker, with the Peugeot family’s 25.4% and 38% voting rights diluted to a matching stake.

Via Reuters