Peugeot looking into Faurecia sale
French car manufacturer PSA Peugeot Citroen is considering a possible sale of automotive parts maker Faurecia.
According to Reuters sources, Faurecia has already hired an adviser to look into the sale of Peugeot's 57% stake in the company either in the market, or to a private equity fund, or to an industry peer.
The sources, who refused to be identified, said that talks on the possible sale are still at a very preliminary stage. It also remains conditional upon the success of negotiations between Peugeot and China's Dongfeng Motor Group.
Discussions on Peugeot's EUR3 billion (USD4 billion) capital increase are stalling, the Reuters report said. The French government and Dongfeng will each acquire 20% to 30% of the beleaguered car company in the said deal.
However, Peugeot is still disinclined to sell the top vehicle interiors and emissions control technology company, since Faurecia helps support its credit rating, Reuters said.
But the divestment might be necessary if the car manufacturer wishes to win the consent of the European Union for another government bailout. Last year, France granted EUR7 billion (USD9.4 billion) in loan guarantees to bolster Peugeot's finances, Reuters reported.
Private equity funds including The Carlyle Group, KKR & Co. and CVC Capital Partners are eying Faurecia, sources said.
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