|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.9400 - 0.9400|
|52 Week Range||0.8000 - 1.1400|
|Beta (3Y Monthly)||0.96|
|PE Ratio (TTM)||3.52|
|Forward Dividend & Yield||0.05 (5.34%)|
|1y Target Est||N/A|
HONG KONG/PARIS (Reuters) - China's Dongfeng Motor will likely trim its stake in Peugeot owner PSA after hiring banks to study options, people close to the matter said, in a move that could ease the French carmaker's planned merger with Fiat Chrysler (FCA) . Dongfeng has a 12.2% equity stake in the French carmaker, and would have about half of that in the combined entity formed by FCA and PSA, which announced in October a tie-up to create the world's fourth-biggest automaker. A smaller Dongfeng holding would likely help get the deal past U.S. regulators amid trade tensions between Washington and Beijing, an issue which has raised questions about the Chinese firm's next move since the PSA-FCA merger was announced.
(Bloomberg Opinion) -- Fiat Chrysler Automobiles NV may have struck too fine a bargain with Peugeot SA. The Italian carmaker has extracted a chunky premium in exchange for agreeing a takeover that’s being dressed up as a merger. At first blush Peugeot’s shareholders aren’t convinced it’s worth it, and it’s not hard to see why they’re skeptical.While there’s no binding deal yet, the terms have been set to ensure Fiat investors take more out of the combination than they put in. The company’s market value was already smaller than Peugeot’s going into the tie-up. Even so, its shareholders — with the billionaire Agnelli family the largest — would withdraw about 5.8 billion euros ($6.5 billion), mainly from a special dividend, before the carmakers come together. That further diminishes Fiat’s financial contribution to the enlarged group.For their part, Peugeot investors will siphon off their company’s stake in car parts-maker Faurecia SE. That’s worth only 2.6 billion euros. Deduct the special dividend and Faurecia from Fiat’s and Peugeot’s respective market values on Tuesday, and the Italian company’s shareholders will contribute about 40% of the combined equity in return for a 50% stake in the new Peugeot-Fiat. Plus they’ll get a half share in the value of any cost savings.True, Fiat was valued closer to Peugeot when judged on average values over the past three months. On that basis, Fiat might deserve some top-up. Still, that alone doesn’t justify the premium.Why is Peugeot being so generous? One reason is that this is really a low-premium takeover by the French company. Peugeot is getting the balance of power in the boardroom, providing the chief executive officer in Carlos Tavares and nominating five out of 10 other roles.The other is that Peugeot’s board thinks it really needs this deal, and is willing to pay for it. Strategically, Fiat brings the U.S. market and the chance to accelerate the development of electric vehicles. Financially, the cost savings are put at 3.7 billion euros yearly. Taxed, capitalized at Fiat’s earnings multiple and adjusted for the more than four years that will be needed to achieve them, these savings could be worth about 6 billion euros even after one-off costs. That’s 3 billion euros to each side.For now the market is taking little on trust. Small wonder. The companies say there will be no plant closures, which puts a lot of pressure on other areas — suppliers in particular — to fund the savings. Peugeot’s and Fiat’s market values have jointly added less than 1 billion euros since talks leaked.Peugeot is presumably counting on the support of its three core investors — the French state, the founding Peugeot family and China’s Dongfeng Motor Group — to get a deal through a shareholder vote if one is finally agreed. But in the market, the jury’s out.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Earlier this year a proposed merger between Fiat Chrysler and Renault failed because of the French government’s clumsiness and its last-minute fears that the deal would further complicate the French carmaker’s delicate “alliance” with Nissan. Now Fiat (IT:FCA) has predictably turned to another French carmaker, Peugeot (FR:UG) , and the two companies have confirmed The Wall Street Journal’s scoop that they have engaged in talks. The merger, which would be based on an all-share transaction, looks simpler to achieve than the Renault deal because Peugeot is not saddled with a contentious imbrication with another carmaker.
MILAN/PARIS (Reuters) - PSA's shares briefly rose as much as 6.6% on Wednesday and trading volumes spiked after a Bloomberg report said Dongfeng Motor Corp is exploring options for its 2.2 billion-euro ($2.5 billion) stake in the French carmaker. The French carmaker's board has not received any notification or signal that Dongfeng planned to reduce its stake, a source close to the company said.
May 8 (Reuters) - Dongfeng Motor Group Co Ltd: * APRIL TOTAL PRODUCTION VOLUME 247,081 UNITS VERSUS 261,804 UNITS * APRIL TOTAL SALES VOLUME 225,483 UNITS VERSUS 257,332 UNITS Source text for Eikon: Further ...
April 9 (Reuters) - Dongfeng Motor Group Co Ltd: * TOTAL MARCH PRODUCTION VOLUME 273,829 UNITS VERSUS 310,995 UNITS * MARCH TOTAL SALES VOL 293,123 UNITS VERSUS 287,965 UNITS Source text for Eikon: Further ...
March 27 (Reuters) - Dongfeng Motor Group Co Ltd: * FY REVENUE RMB 104,543 MILLION VERSUS RMB 125,980 MILLION * BOARD OF DIRECTORS PROPOSES A DIVIDEND OF RMB0.25 PER SHARE FOR YEAR * FY PROFIT ATTRIBUTABLE ...
Nissan Motor's China joint venture with Dongfeng has not made any changes to its mid-term China sales plan, a company spokeswoman told Reuters on Wednesday, responding to a report that it has cut its sales target. "Dongfeng Motor Company Limited has not changed its mid-term China plan. Dongfeng Motor Company Limited is the joint venture between Nissan and Dongfeng in China.
March 12 (Reuters) - Dongfeng Motor Group Co Ltd: * DONGFENG AND MAXION WHEELS FORM ALUMINUM WHEEL JOINT VENTURE * MAXION WHEELS - ANNOUNCED AGREEMENT TO FORM A NEW PASSENGER CAR ALUMINUM WHEEL JOINT VENTURE ...
March 8 (Reuters) - Dongfeng Motor Group Co Ltd: * FEB TOTAL PRODUCTION VOLUME 132,773 UNITS VERSUS 168,947 UNITS * FEB TOTAL SALES VOLUME 135,231 UNITS VERSUS 165,153 UNITS Source text for Eikon: Further ...
China's national railway operator has sold a 15 percent stake in one of its units for 2.37 billion yuan ($349.9 million) to a group of six firms including JD.com's logistics arm and Dongfeng Motor , in the latest implementation of the country's mixed-ownership reforms. Beijing has been trying to bring private-sector investment and management into state-owned companies to enhance their efficiencies and competitiveness. China Railway said on its official WeChat account on Friday that Dongfeng Motor, BAIC Motor, CRRC Corp , JD Logistics, Global Logistics Properties (GLP) and China International Marine Containers (CIMC) had bought the 15 percent stake in its unit, China Railway Special Cargo Services (CRSCS).
Jan 7 (Reuters) - Dongfeng Motor Group Co Ltd: * DEC TOTAL SALES VOLUME 267,720 UNITS * DEC TOTAL PRODUCTION VOLUME 255,166 UNITS VERSUS 294,140 UNITS Source text for Eikon: Further company coverage: