Peugeot’s talks on the 3 billion euro ($4.11 billion) French-backed tie-up with Dongfeng are progressing more slowly than the troubled carmaker had hoped, according to sources, after negotiators returned from meetings in China.
The sources with knowledge of the matter said the French carmaker now hopes to sign a non-binding outline deal with its Chinese partner in late November at the earliest, a month later than it was expecting as recently as last week and a deal could then be signed early next year.
A Peugeot spokesman said the company had nothing to add to earlier comments on the talks. It has confirmed it is seeking a deeper tie-up with existing partner Dongfeng or another carmaker.
Peugeot executives, officials from France’s APE, the agency in charge of government holdings, were part of a delegation that attended key meetings with Dongfeng in Beijing on Saturday and Wednesday, the sources said.
The talks were not as productive as expected because Dongfeng is not in a hurry to invest in Peugeot and is playing hardball on the price, the sources added.
Meanwhile, according to other sources, Peugeot is pushing ahead with efforts begun in May to sell off part of its Banque PSA car loans division – as Europe’s biggest car financing player Santander is reviewing a bid to acquire 50% of Banque PSA, which is worth about 3 billion euros.
) - Monday, October 21st, 2013 - filed under Citroen
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