Consumer Goods & Retail

Peugeot maker PSA whittles down Faurecia stake as part of Fiat deal

FILE PHOTO: The logo of French car manufacturer Peugeot is seen at the 33th Auto Zurich Car Show in Zurich, Switzerland, Oct. 31, 2019. REUTERS/Arnd Wiegmann

PARIS (Reuters) - Peugeot maker PSA Group PEUP.PA on Thursday said it had raised 308 million euros ($364 million) from selling about 7% of car parts firm Faurecia EPED.PA to investors, with proceeds due to be paid out to shareholders after it merges with Fiat Chrysler.

The French carmaker had said earlier this week that it would sell down a chunk of Faurecia as part of the merger deal with Fiat FCHA.MI.

Proceeds will be distributed to shareholders in Stellantis - their merged company, due to be created in the first quarter of 2021 - in cash, alongside a distribution-in-kind of PSA’s 39% remaining stake in Faurecia.

($1 = 0.8461 euros)

Reporting by Sarah White; Editing by Himani Sarkar