French media recently reported that after the merger of Peugeot Citroen (PSA) and Fiat Chrysler (FCA), the Peugeot family will hold a 6.2% stake in the new group and plans to increase its shareholding as soon as possible. The French government will eventually withdraw from the new group. Although Dongfeng Motor will reduce its stake, it will not withdraw.
Last month, Peugeot Citroen and Fiat Chrysler reached a binding agreement on a $ 50 billion merger and acquisition that will complete the transaction in 12 to 15 months, creating the world's fourth-largest automaker.
The Peugeot family currently holds 6.2% of the new group. According to external analysis, according to the merger agreement between Peugeot Citroen and Fiat-Chrysler, the Peugeot family's increase in shares must not exceed 2.5%, and this increase in shares can only be acquired from French state investment bank Bpifrance Participations and Dongfeng Motor.
When Jean-Philippe Peugeot, the head of Etablissements Peugeot Freres, a member of the Peugeot family, was asked if the stake increase was a major goal, he answered "yes." "To achieve this possibility, complicated negotiations were conducted. This is not an inevitable result. Once the merger is completed, my family will give a favorable signal," he said.
At the same time, he expects that the French government will eventually withdraw from the new Peugeot Citroen-Fiat Chrysler Group. "I think the French government is not a permanent shareholder. They will of course continue to be shareholders for a long time to ensure the safety of French positions," he said.
He believes that although Dongfeng Motor will reduce its shareholding, it will not exit the new group. "Maybe part of it, but I don't think they will sell all the shares. Peugeot Citroen's business in China has not yet reached our expectations, but for Dongfeng, this is just a small problem."
A Peugeot Citroen spokesperson revealed that Peugeot's remarks were "in line with the hints at the time the agreement was signed". Fiat Chrysler declined to comment.