PSA Peugeot Citroen (UG:EPA) sealed a rescue deal with China’s Dongfeng Motors (0489.HKG) and the French government on Tuesday, Agence France-Presse reported, citing a source close to the matter. The struggling French carmaker’s board approved an agreement for Dongfeng and the government each to inject EUR800 million (US$1.1 billion) for 14% stakes in the company, ending the reign of one of France’s oldest industrial dynasties. The total fundraising effort could bring in at least EUR3 billion through the sales of additional shares. Dongfeng and PSA already co-produce cars in China.
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