A year ago, the General Motors and PSA Peugeot-Citroen concerns planned a strong alliance for regaining of the market from Europe. And to validate the understanding, GM decided to acquire a stake at the Peugeot-Citroen PSA.
The actions were seen as a breath so much needed for the French manufacturer, whose development was tumbled. For the 24,839,429 shares, accounting 7% of the PSA Peugeot-Citroen stake, GM paid 320 million euros.
The collaboration did not give the expected results; however, the Chinese Dongfeng Motors have shown interest in the acquisition of a 20% stake in the PSA. Thus, in order not being in conflict with its partners from the land of the Great Wall, the SAIC Motors, but also because PSA shares continued to fall, GM decided to get rid of the 7% purchased in 2012, even if it involved significant losses.
According to the official release issued by the Americans, the 7 percent were sold with 250 million through a private placement made to some institutional investors. The transaction also affected more the PSA evolution on the stock market, their actions manifesting impairment by 12%. Even so, the General Motors will continue its partnership with the French, but in a smaller form.