Peugeot, Dongfeng sign tie-up deal in Paris ceremony

Wed Mar 26, 2014 12:57pm EDT
 
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PARIS (Reuters) - PSA Peugeot Citroen (PEUP.PA: Quote) and China's Dongfeng Motor Group (0489.HK: Quote) signed a framework deal on Wednesday to proceed with a planned 3 billion euro ($4.1 billion) capital increase for the French carmaker.

French President Francois Hollande and visiting Chinese counterpart Xi Jinping oversaw the signing of the agreement at a ceremony in Paris. Announced in February, the deal will see state-owned Dongfeng and the French government take matching 14 percent stakes in Peugeot.

(Reporting by Laurence Frost; Editing by Andrew Callus)

 
An employee installs car doors at a production line of Dongfeng Peugeot Citroen Automobile factory in Wuhan, Hubei province, February 13, 2014. REUTERS/Darley Shen