Report: PSA also close to Santander loan deal image

Besides the well-known capital deal that would see the ailing PSA carmaker raise up to 3 billion euros ($4.1 billion) from a capital increase involving China’s Dongfeng and the French government, the company also seek to close a deal with Banco Santander.

According to sources, PSA Peugeot Citroen and the Banco Santander are close to finalizing the agreement on a European car loans alliance and the French carmaker, the second largest in Europe, plans to officially unveil it alongside the one with Dongfeng.

“The plan is to announce a package of agreements next Wednesday,” said one source.

“Most of the future financing would be supported by Santander,” said another of the sources. “There are 80 people working full time on the deal at the moment.”

The three people familiar with the proceedings, who talked to Reuters under condition of anonymity because there are not allowed to discuss private matters with the media, said Peugeot and Santander would together make up a sales financing network – the Madrid-based bank would join 50-50 joint ventures with Banque PSA Finance in European markets.

Via Reuters