Less than 24 hours after announcing its intent to sell its entire 7 percent ownership, the Detroit-based automaker early Friday morning announced the sale of all 24.8 million shares for approximately $343 million.
DETROIT, MI- General Motors Co. didn’t waste any time selling its stake in French automaker PSA Peugeot Citroen.
Less than 24 hours after announcing its intent to sell its entire 7 percent ownership, the Detroit-based automaker early Friday morning announced the sale of all 24.8 million shares for approximately $343 million.
GM bought the PSA stake in March 2012 for about $400 million when the companies announced the car-building and purchasing alliance. A GM spokesman said the company expects a $150 million net gain from the sale.
In its 2012 fourth-quarter earnings report GM already incurred a $200 million impairment of investment loss in PSA.
Prior to selling its stake in PSA, GM on Thursday announced that the two automakers altered their alliance plans in Europe, including a reduction in expected savings from $2 billion to $1.2 billion by 2018, after reducing the number of co-developed products and “synergies.”
Less than 24 hours after announcing its intent to sell its entire 7 percent ownership, the Detroit-based automaker early Friday morning announced the sale of all 24.8 million shares for approximately $343 million.“The partners are now focused on execution of the Alliance while remaining open to new opportunities,” said Karl-Thomas Neumann, GM executive vice president and president, Europe, in a statement on Thursday.
The announcement came as reports of Dongfeng Motor Group, a Chinese automaker and GM rival, wanting to invest in Peugeot.
According to Reuters, Peugeot’s board approved a plan for an alliance with Dongfeng in which the “Chinese carmaker and the French state would buy large minority stakes at a 40 percent discount to Peugeot's current share price.”