France - China

Peugeot boards opens capital to China's Dongfeng, French state

A PSA Peugeot-Citroën factory
A PSA Peugeot-Citroën factory François Lafite

France's PSA Peugeot Citroën's board approved a tie-up with Chinese carmaker Dongfeng and the French state on Tuesday. The decision will mean the end of the Peugeot family's 200-year majority control of frances' biggest auto manufacturer.

Advertising

Peugeot's supervisory board on Tuesday gave the go-ahead for a deal that is expected to mean the French state and Dongfeng each injecting 800 million euros for 14 per cent stakes

Dossier: Eurozone in crisis

in the company.

The peugeot's family, currently at 25.4 per cent, will be reduced to the same share and will lose its double-voting rights that gives it 38.1 per cent of votes.

The company's capital will increase to at least three billion euros.

The original company, Peugeot Frères, was formed in 1810 to produce bicycles and coffee and started manufacturing cars in 1889.

PSA Peugeot Citroën has been through a deep crisis, which has led to factory closures and lay-offs, over the last two years.

Daily newsletterReceive essential international news every morning