PSA Confirms Plan to Sell Majority Stake in Gefco Unit

PSA Peugeot Citroen says it will sell more than 50% of its Gefco logistics unit to an unidentified investor, confirming news reports in recent months.

The company announced plans in February to sell assets, including an unspecified Gefco stake for which it hoped to garner €560 million. Bloomberg News reported in May that five private equity firms were among the prospective buyers.

PSA said last week that joint venture partner General Motors Co. would move most of its European logistics operations to Gefco, starting next year. Gefco said on Tuesday its operations would absorb about 100 GM logistics employees. The partners have agreed to share logistics, purchasing, vehicle development and production to save $1 billion (€814 million) each per year by 2017.