U.S. auto giant General Motors Co. (IW 500/5) has acquired a 7% stake in PSA Peugeot Citroen after the French company raised $1.32 billion via a share issue, a statement said March 27.
The deal, agreed as part of a wider technical tie-up, means GM is the second largest shareholder in Peugeot after the Peugeot family, which has some 25% of the stock and nearly 38% of the voting rights.
Peugeot (IW 1000/43), Europe's No. 2 carmaker after Germany's Volkswagen, said the fund raising exercise had been a success, with demand totaling 1.78 billion euros.
The two companies announced the alliance at end-February, stressing that it was not a merger and both remained independent entities.
Under the agreement, a joint global committee aims to generate some $2 billion in savings annually within about five years.
To do that, GM, which controls money-losing European brands Opel and Vauxhall, and Peugeot will share certain vehicle platforms, components and modules.
However, each will continue to "market and sell its vehicles independently and on a competitive basis," they said in a joint statement at the time.
GM and Peugeot will first work together on small and midsize passenger cars, family vans and crossover sport utility vehicles and may then consider developing a new common platform for low-emission vehicles.
The accord also creates a global purchasing joint venture to buy $125 billion in commodities and other goods and services from suppliers a year.
Copyright Agence France-Presse, 2012
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