Clifford Chance is advising Chinese state-owned carmaker Dongfeng Motor Group Co. on a proposed $1.1 billion investment in France’s PSA Peugeot Citroën Group.
As part of the agreement approved by Peugeot’s board Tuesday, Dongfeng and the French government will each inject $1.1 billion into family-owned Peugeot, in an effort to turn around the troubled automaker. Peugeot posted a net loss of about $3.16 billion in 2013, following a record $6.88 billion loss in 2012. In addition to the $2.2 billion investment, Peugeot will raise a further $1.4 billion by issuing warrants to existing shareholders.
