Mexican Media Brands
UPDATE: France Ponders Possible Sale of PSA Stake
The French state is reviewing its holdings and could decide to sell all or part of its 14% stake in PSA Group, a government source tells Les Echos.
#economics
Share
The French state is reviewing its holdings and could decide to sell all or part of its 14% stake in PSA Group, a government source tells Les Echos.
Other sources tell the Financial Times such as sale would help France fund a €3 billion aid package for French electric utility EDF SA, which is constructing a nuclear power plant in the U.K.
The government acquired the holding in 2014 when it invested €800 million in PSA to help the company avoid financial collapse. PSA rebounded to a €1.2 billion profit in last year, and France’s stake has nearly doubled in value.
The government’s investment was intended to balance an equal stake acquired by China’s Dongfeng Motor Group. Les Echos concedes it isn’t clear whether France would balk at a stock sale to preserve the balance.
RELATED CONTENT
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.
-
Global Car Market to Shrink for 2-3 Years
Global sales of light vehicles will decline year on year through at least 2021, predicts LMC Automotive at its annual outlook conference outside Detroit, Mich.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.