French automaker PSA Peugeot-Citroen is in exclusive talks with Russian Railways (RZD) to sell a majority stake in its GEFCO logistics subsidiary, in a deal which could be worth 800 million euros, the car giant said on Thursday.
The French group confirmed in a press release it is offering RZD the chance to acquire a 75 percent stake in GEFCO, one of Europe’s largest logistics companies.
Russian Railways confirmed “the decision to launch exclusive talks had been taken” after the Peugeot-Citroen board ruled “RZD had put in the best offer.”
The sale comes as part of PSA Peugeot-Citroen’s broader sell-off strategy, the company says.
To be finalized, the deal needs to comply with international antimonopoly regulations.
Russian Railways says in intends keep GEFCO’s management and current operational structure.
The Russian rail giant believes the deal will boost Europe-Asia transcontinental goods traffic, an area in which it has invested heavily and sees as a priority.