PSA: Talks with Dongfeng Are Moving Slowly

PSA Peugeot Citroen plans to sell a €3 billion equity stake to Dongfeng Motor Corp. are moving slower than expected, according to Reuters.

PSA had hoped to sign a non-binding agreement with the Chinese carmaker this month. But that now appears unlikely to happen until at least late November, unnamed sources tell the news service.

Last week Bloomberg News reported that Dongfeng says it is still determining the value of an investment in PSA. Reuter's sources confirm that Dongfeng feels no urgency to reach a deal and say the company is pushing back on the price.

Separately, PSA is moving ahead with a plan to sell 50% of its Banque PSA auto loan units for about €3 billion, other sources tell Reuters. They say it isn't clear if the carmaker will continue to pursue the deal if its talks with Dongfeng are successful.