General Motors now holds a 7% stake of French automaker PSA Peugeot Citroen, the first critical step in an alliance announced a month ago – and one that the French automaker is already signaling it would like to expand.
GM’s acquisition was linked to a new Peugeot stock offering that the Paris-based maker intended to raise 1 billion Euros ($1.32 billion) in much-needed capital. In fact, demand for the share issue by Europe’s second-largest automaker ran about 78% above the original target, at 1.78 billion Euros.
GM now becomes the second-largest shareholder in PSA Peugeot Citroen after the founding Peugeot family. Represented by several key executives, including chairman Phillippe Varin, the family itself holds a 25% stake – but has 38% of the corporate voting rights.