Peugeot, Dongfeng sign tie-up deal in Paris ceremony

March 26, 2014
An employee installs car doors at a production line of Dongfeng Peugeot Citroen Automobile factory in Wuhan
An employee installs car doors at a production line of Dongfeng Peugeot Citroen Automobile factory in Wuhan, Hubei province, February 13, 2014. REUTERS/Darley Shen

PARIS (Reuters) - PSA Peugeot Citroen (UG.PA) and China's Dongfeng Motor Group <0489.HK> signed a framework deal on Wednesday to proceed with a planned 3 billion euro ($4.1 billion) capital increase for the French carmaker.

French President Francois Hollande and visiting Chinese counterpart Xi Jinping oversaw the signing of the agreement at a ceremony in Paris. Announced in February, the deal will see state-owned Dongfeng and the French government take matching 14 percent stakes in Peugeot.

(Reporting by Laurence Frost; Editing by Andrew Callus)