PSA Peugeot Citroen announced it will not sell any more assets after that of its logistics unit Gefco.
On Monday, November 5th, Peugeot signed a deal with Russian Railways to sell the logistics units Gefco for 800 million euro ($1.03 billion). As part of the deal, Gefco will also offer Peugeot a special dividend of 100 million euro. The agreement is expected to close by the end of this year, and its is part of PSA Peugeot Citroen’s plan started in February 2012 to sell 1.5 billion euro of its assets.
“It’s clear that we’ve had an asset sale programme in place since the beginning of the year, which has been executed on,” said Varin at a press conference. “We don’t intend to sell any more assets.”
Russian Railways Chief Executive Officer Vladimir Yakunin said that buying part of Gefco is part of the effort to keep up with competitors, such as Berlin-based Deutsche Bahn AG, in developing a logistics arm alongside infrastructure and train operations.
Peugeot also has to deal with increasing pressure from ratings services, as the company struggles with overcapacity in Europe and continuous loses in the region. In February the automaker announced it plans to sell assets, such as Gefco, to cut costs.