PSA May Sell Control of Gefco Logistics Unit to Russia

PSA Peugeot Citroen might sell a majority stake in its Gefco logistics business to state-owned OAO Russian Railways, Bloomberg News reports.

French union leader Christian Lafaye tells the news service that Russian Railways made the highest bid. Two other unidentified sources say the Moscow-based company is offering about €1 billion for a 75% stake in Gefco.

PSA announced plans in February to sell €1 billion of assets this year, including an unspecified Gefco stake for which it hoped to garner €560 million. PSA alliance partner General Motors Co. said in July it was moving most of its European logistics to Gefco.

The partners aim to save money by sharing logistics, purchasing and vehicle development.