French Peugeot family that began manufacturing businesses back in the 19th century, owned by the French multinational automaker Groupe PSA, had been exploring an option to quickly raise its stake in the new carmaker entity that formed following a whopping $50 billion merger of French PSA and Italian-American carmaker Fiat-Chrysler Automotive NV, a Peugeot family representative said in an interview with a French newspaper L’Est Republican on Sunday, the 12th of January 2020.
In point of fact, Groupe PSA and FCA had reached a binding accord last month which in effect would create the world’s fourth-largest automaker and the deal was expected to be concluded within next one year and a half, nonetheless, Peugeot family, which owns a 6.2 per cent stake in Groupe PSA, would likely to face off a lower significance in the management board of the newly formed carmaker entity.
Aside from that, under the binding agreement reached last month, the Peugeot family was allowed to heighten up its stake up to 2.5 per cent in the newly formed PSA-FCA merger by acquiring shares from French state-owned investment bank Bpifrance Participations alongside China’s Dongfeng Motors, both of which are existing shareholders of Groupe PSA.
Meanwhile, adding that raising stakes in the merger had been a major objective for the Peugeot family, head of the Peugeot Freres Holding Company, said to the French newspaper, L’Est Republican on Sunday (January 12th), “There was a complex negotiation in order to obtain this possibility.
It wasn’t necessarily a foregone conclusion. Once the merger is complete, my family will give favourable signals. ”