PSA Confirms Bid for Malaysia’s Proton

PSA Group confirms it has submitted a bid to form a carmaking artnership with Malaysian Proton Holdings Bhd.

The company offers no other details but says it is “willing to go further” in its offer to help the financially struggling carmaker. Analysts say PSA, which also is near a deal to buy General Motors Co.’s Adam Opel unit in Europe, could use Proton’s underutilized production capacity to gain a desired base in southeaster Asia.

PSA and rival bidder Zhejiang Geely Holding Group reportedly seek management control and at least a minority equity stake in Proton. The 34-year-old Malaysian company, which sold about 102,000 cars last year, has an estimated annual capacity of at least 400,000 units. Proton also owns British sports car maker Group Lotus.

Proton’s share of its home market has shrunk from around 70% decades ago to 15% currently as lower-priced and better-made Japanese models entered the market. Last year the company received a 1.5 billion-ringgit ($337 million) government bailout loan under condition that Proton secure a foreign partner by this summer.