SHANGHAI--Shares of Dongfeng Motor Group Co. (0489.HK) have been
halted from trading on Tuesday pending an announcement, the
state-run carmaker said in a filing with the Hong Kong
exchange.
Dongfeng is nearing a deal to buy a 14% stake in French carmaker
PSA Peugeot Citroën (UG.FR), people familiar with the deal have
said.
The Peugeot board is expected to approve a draft agreement on
Tuesday. The document could be ratified on March 26, during an
official visit of China's President Xi Jinping to Paris, the people
said.
Dongfeng spokesman Zhou Mi wasn't immediately available for
comment on Tuesday morning.
Peugeot, one of France's largest and oldest industrial
companies, is in a race to repair its finances, badly hurt by
dwindling sales in its core European markets, and large factories
operating well below full capacity.
Dongfeng is China's second-biggest carmaker by volume if its
sizable commercial-vehicle sales are included. But the overwhelming
majority of Dongfeng's cars are produced with the company's
joint-venture partners, which include Japanese auto makers Nissan
Motor Co. and Honda Motor Co., and Peugeot.
Write to Rose Yu at rose.yu@dowjones.com
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