Listen to this article
PSA Group, the maker of Peugeot and Citroen cars, is in late stage talks with General Motors to combine the two groups’ European businesses, according to people close to the situation.
The talks, which could be announced in the coming days, could lead to a merger between PSA, Europe’s second largest carmaker by sales, and German-based Opel, according to the same people.
A PSA spokesman confirmed the company was in talks with GM to deepen their partnership. The news was first reported by Bloomberg.
The company stated:
Since 2012, General Motors and PSA Group have established an alliance that now covers three projects in Europe and has generated substantial synergies for both groups.
In this context, General Motors and PSA Group regularly review opportunities for expansion and cooperation. The PSA Group confirms discussions with General Motors, numerous strategic initiatives to improve profitability and operational efficiency, including a potential acquisition of Opel.
At this stage there is no certainty on the conclusion of an agreement.
Opel declined to comment.
Peugeot shares are up 6 per cent at publication time, accelerating their gains on the news. It is the biggest daily share leap since July.
Image via Reuters