The Peugeot family, which is set to own a 6.2% stake in the new automaker resulting from PSA and Fiat Chrysler’s merger, aims to boost its holding as soon as possible, a representative stated in an interview.
PSA and Fiat Chrysler agreed to a binding agreement earlier month on a $50 billion tie-up that will form the world’s No. 4 automaker after the deal is finished in 12-15 months.
According to the terms of the deal, the Peugeot family can boost its shareholding by up to 2.5% only by acquiring shares from Bpifrance Participations, a French state investment bank, and Chinese automaker Dongfeng Motors, both are also PSA shareholders.
Asked by regional French newspaper L’Est Republicain if increasing the stake was a significant objective, Jean-Philippe Peugeot, heading the family’s Etablissements Peugeot Freres holding company, answered that it was.
“There was a complex negotiation in order to get this possibility. It wasn’t necessarily a foregone conclusion. Once the merger is done, my family will give favorable signals,” Peugeot informed the newspaper.
A PSA spokesman informed Reuters that the automaker’s comments were in line with what had been told when the deal signed. FCA refused to discuss.
Peugeot also stated that he expected the French state, represented through Bpifrance, to ultimately leave the new company.
“I think that it is not meant to be there forever. It will undoubtedly remain long enough to make sure that (French) jobs are safe over time,” he informed.
However, he also said that it was unlikely that Dongfeng would entirely sell out of the new group even though it prepares to decrease its shares in PSA.