HONG KONG (Reuters) - China's Dongfeng Motor Group Co <0489.HK> said on Wednesday it will invest 800 million euros ($1.1 billion) in French carmaker Peugeot SA via a share sale and rights issue while France's government does the same, confirming a Reuters report.
PEUGEOT (UG.PA) Dongfeng and the French government signed a non-binding outline agreement on the deal on Tuesday, two sources with knowledge of the matter told Reuters.
In a filing to the Hong Kong Stock Exchange, Dongfeng said it had entered into a non-binding accord with Peugeot to strengthen co-operation in technology, research and development, manufacturing and overseas distribution.
Trading in Dongfeng's shares, which was suspended on Tuesday, will resume on Wednesday.
For full statement please click http://link.reuters.com/bec96v ($1 = 0.7272 euros)
(Reporting by Donny Kwok; Editing by Kenneth Maxwell)
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