MILAN, Aug 8 (Class Editori) - These are critical days for the automotive industry. While Renault and Nissan are studying how to restructure their alliance (with Fca at the window) it could be the other French company, Psa Peugeot-Citroen, to be involved first in an actual m&a operation. According to reports from the Bloomberg agency, the Chinese group Dongfeng, which with 12.2% is one of the major shareholders of Peugeot (along with the homonymous family and the French state), is considering the sale of the share in the French automotive manufacturer.
It is not yet clear if Dongfeng would give up the entire stake or only a share. However, the Asian group - linked to Peugeot also by a joint venture - wants to coordinate its action together with the French company to be able to invest in other areas of the automotive sector. In short, if the operation goes ahead, the economic-political chaos that characterized the Renault issue should not be raised.
It must be remembered that Dongfeng entered Peugeot in 2014 together with the French State, in what in fact was a rescue of the French carmaker from the financial collapse. And in this sense the move of the Chinese company was fruitful, as it was made at a price of 7.50 euros, while presently the securities of Peugeot on the Paris stock exchange deal reach around 19.8 euros.
As far as Dongfeng is concerned, he would like to monetize the investment (at the stock market price, the transaction could bring about 2.2 billion to the Chinese group compared to the 800 million spent in 2014) in order to invest in other areas of the automotive sector, in particular in electric cars or autonomous driving.
As for Peugeot, instead it should be remembered how a few weeks ago the CEO Carlos Tavares, the former number two of Renault Carlos Ghosn - who has become the architect of the rebirth of Peugeot in recent years - said that Psa was open to any opportunity to m&a that could create long-term value for the company. And it is no coincidence that this winter there were also talks with Fca to understand if there could be margins for an aggregation between Peugeot and Fiat (moreover the relations between the Peugeot family and the Agnelli-Elkann are historically excellent.) However, the talks did not lead to anything concrete and Fca diverted its ambitions on Renault before the presidential intervention of Emmanuel Macron blocked the operation.
(Source:Class Editori)
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