PSA in Talks with Russian Railways to Sell Gefco Stake

PSA Peugeot Citroën announced that it has entered into exclusive negotiations with JSC Russian Railways (RZD) to form a strategic partnership to drive faster growth for Gefco. The implementation of this strategic partnership would enable Gefco to step up its growth by combining its strengths with those of JSC Russian Railways (RZD). The transaction follows on from Gefco’s early 2012 signature of an exclusive long-term logistics contract with PSA’s Automotive Division and a similar contract with General Motors Europe in July 2012.

Gefco, thanks to this transaction, would further enhance its geographic expansion strategy in China, India and Latin America, but also accelerate its growth in Eastern and Central Europe, particularly in Russia. RZD and Gefco would propose unrivalled logistics services between Europe and Asia.

PSA Peugeot Citroën would sell a 75% interest in GEFCO for €800 million, after the payment by Gefco to PSA Peugeot Citroën of €100 million in a special dividend. A shareholders agreement would ensure the protection of both parties interests as well as the sustained quality of the logistics services provided by Gefco to the Group.

PSA Peugeot Citroën and Gefco will initiate an information and consultation process with their works councils concerning the offer. The proposed transaction will be subject to antitrust clearance in certain jurisdictions.