Photo: General Motors
General Motors is selling its entire seven percent stake of almost 25 million shares in PSA Peugeot Citroen through a private placement to institutional investors, the Detroit-based company announced today.
GM, who acquired the stake in PSA in March 2012, when the two companies agreed on a strategic alliance, said that the French company no longer needs its support, adding that the alliance between the two will remain strong despite the sale.
“Our equity stake was planned to support PSA in their efforts to raise capital at the time of the creation of the GM and PSA alliance, and that support is no longer needed,” said GM Vice Chairman Steve Girsky. “The alliance remains strong with our focus on joint vehicle programs, cross manufacturing, purchasing, and logistics. We’re making good progress while remaining open to new opportunities.”
In GM related news, the American company has completed the sale of its 8.5 percent common equity ownership in Ally Financial Inc. for total proceeds of $900,000.
“Our equity stake was planned to support PSA in their efforts to raise capital at the time of the creation of the GM and PSA alliance, and that support is no longer needed,” said GM Vice Chairman Steve Girsky. “The alliance remains strong with our focus on joint vehicle programs, cross manufacturing, purchasing, and logistics. We’re making good progress while remaining open to new opportunities.”
In GM related news, the American company has completed the sale of its 8.5 percent common equity ownership in Ally Financial Inc. for total proceeds of $900,000.
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