The reports on the matter keep pouring in – we might even consider putting PSA and Dongfeng on the Justin Bieber word of mouth pedestal. Well, back to business – sources point out that PSA Peugeot Citroen, the French government and Dongfeng have finally reached an outline deal.
The news comes as we have heard them all – Dongfeng halted stock transaction pending a mysterious announcement, delegations from France and PSA should be in China now and discords among the Peugeot family or with protesting minority shareholders still reign.
Nevertheless, according to three sources that talked to Reuters and have direct knowledge of the proceedings, the outlined deal between PSA, Dongfeng and the French to raise up to 4 billion euros ($5.5 billion) in capital is due to be presented on February 18 to the PSA board of directors.
According to the sources, the agreement would likely be signed the same day as a non-binding memorandum of understanding and would see and accompanying industrial plan. Peugeot and Dongfeng would retain and deepen their existing joint venture, expand to the South East Asian markets and also further increase R&D cooperation.