22 Jan, messages about Dongfeng merging PSA all around France, but Dongfeng general manager ZHU Fushou still does not talk too much about the merging at Dongfeng Group Annual Summary Conference at Beijing. Facing media frequently questions about Dongfeng next step, ZHU Shoufu just with “if we merge PSA, technology resource sharing is the most importantvalue for both of us” answers all questions.
One day ago, PSA board of supervisions approves capital injection plan with Dongfeng and France government. Both sides will invest 3 billionEuros, which Dongfeng and France government will take 14% shares of PSA. Current largest shareholder, Peugeotfamily shares will be cut to 14% as well. Dongfeng and France government will invest 750 million Euro respectively.
If the next negotiation goes well, Dongfeng will be the first Chinese company invests into large European automobile company. According to 20thstatistics published by Dongfeng, the company sales of 2013 is 3.52 million, which has increased 14.8% over sales of last year, which take the second position of automobile industry. It sales income is 453.36 billion Yuan, which has increased 24.4%.
In 2103, Dongfeng hand in 40.6 billion Yuan tax. Compared with 750 million Euro merging capital, Dongfeng has no worried about it.
ZHU Fushou does not cautious without reason. According to report of France media, Peugeotfamilyhas made an agreement, but whether or not the agreement accepted by Dongfeng is still unsure.
Up to now, France media does not hold optimistic view. They believe Dongfeng does not own international operation experience. The only benefit from Dongfeng is just capital. Besides, media of France believe Dongfeng investing into PSA is coming for core technology of PSA. What is surprise, with the merging report publishing, share price does not rise, but drop as large as more than 11%.
Besides, the reason for France government invests into PSA is to keep PSA European blood. When facing key decision, particularly divergence happened between Peugeotfamilyand Dongfeng, France government will stay with Peugeot family for sure.
Different with Geely merging Volvo, if Dongfeng invest into PSA with only 14% shares, Dongfeng still does not own right of speech. The company cannot do much with current plan. Finally, the merging will become normal share investment.
