Russian state railway monopoly Russian Railways has considered bidding for Gefco, PSA Peugeot-Citroen’s logistics division.
The information came via Reuters, who cited materials produced for a Russian Railways’ board meeting in which a Gefco decision was discussed.
French carmaker PSA plans to sell a 75 percent stake in Gefco, expecting to raise €1 billion to cut the automaker’s debt and to balance its finances. PSA has been hit hard by the crisis in the euro-zone, most of all in its traditionally strong markets in the south of Europe, where vehicle sales are plunging.
In the first half of this year, PSA posted a net loss and an operating loss of €700 million at its core carmaking division. Manufacturing operations cost PSA €200 million each month, with the company not expecting cash flow to turn positive until 2015.
One way to make some money is selling a controlling stake in Gefco. Russian Railways declined to comment on the matter and it is not clear if it remains interested in Gefco.
According to people familiar with the situation quoted by Reuters, PSA had last month narrowed the field of potential buyers to four private equity bidders – Gores Group, Platinum Equity, PAI and a team of CVC and AXA Private Equity.