The Peugeot family is reportedly going to meet with the French government to talk over PSA Group’s stakes.
The Les Echos daily financial paper reported last week that France is weighing the possibility of selling its entire stake owned in Peugeot-Citroen, or just a part of it, as the government has other worries to take care of, such as helping some newly troubled state-owned companies. Following the 2014 saving move, the state and China’s Dongfeng Motor both bought a matching 14.1 percent stake of the auto group, the same percentage owned by the Peugeot family. Considering the government’s plans, all three major shareholders are going to have talks over the matter, a source told Reuters.
One the main issues around a possible selling move is a future shift in the power balance. “If the state reduces the stake, the Peugeot family would be interested,” the source said. The value of the government’s PSA stake has nearly doubled in the two years since it paid 800 million euros (891 million dollars) at a time when the carmaker was on the verge of bankruptcy.
In 2014, the Peugeot family – which founded the company in 1810 as a maker of coffee mills and bicycles – saw its controlling stake fading away and their 25.4 percent stake and 38 percent of voting rights dropped to 14,1 percent and 23 percent, respectively.