Peugeot in exclusive talks to sell 75 per cent in Gefco logistics to Russian Railways for $1.04 bn
20 Sep 2012
French carmaker PSA Peugeot Citroen today said that it is in exclusive talks to sell 75 per cent stake in its Gefco logistics division to OAO Russian Railways for €800 million ($1.04 billion), in order to reduce debt.
As part of the proposed deal, Europe's second-biggest carmaker will also receive a special dividend of €100 million from Gefco.
Peugeot said the transaction follows Gefco's signing of a long-term exclusive logistics contract with PSA Peugeot Citroën's Automotive Division in early 2012 and a similar contract with General Motors Europe in July 2012.
The deal with the state-owned Russian company would depend on antitrust approvals, but both parties aim to close the deal by the end of the year, it said.
The Paris-based carmaker said the deal would help Gefco expand into China, India and Latin America, and accelerate growth in Eastern Europe and Russia.
Russian Railways said it would take over management of Gefco and all of its existing business units, including those providing services to Peugeot.
Founded in 1949 by Peugeot, Gefco is one of the top 10 transport and logistics groups in Europe and a world leader in automotive and industrial logistics.