French minister confirms state will inject $1.1 billion in Peugeot

18/02/2014 - 19:47

PARIS (Reuters) - France's Industry Minister confirmed on Tuesday the French state would inject 800 million euros ($1.10 billion) in PSA Peugeot Citroen leaving it with a 14 percent stake in the carmaker as part of a deal with China's Dongfeng .

PEUGEOT (UG.PA)and Dongfeng have agreed a 3 billion euro capital tie-up that buys Peugeot more time to turn its business around, brings in new management and ends two centuries of family control, two sources told Reuters before an official announcement set for Wednesday.($1 = 0.7272 euros)

(Reporting by Natalie Huet; editing by John Irish)