Peugeot, Banque PSA Finance Ink Binding Framework Agreement With Santander CF

(RTTNews) - PSA Peugeot Citroën (PEUGF.PK) Friday said that following exclusive negotiations entered into on February 19, the French car maker and Banque PSA Finance signed a binding Framework Agreement with Santander Consumer Finance or Santander CF, which would establish a partnership between the two groups in 11 countries.

The relevant PSA Peugeot Citroën and Banque PSA works councils issued a favorable opinion on the transaction. Santander CF is the consumer finance division of Banco Santander (BNC.L, BSBR, SAN).

The partnership between Banque PSA Finance, the auto finance company of PSA Peugeot Citroën, and Santander CF, will be in the form of dedicated local partnerships in most countries, or, in some jurisdictions, of commercial agreements.

The closing of the 11 transactions would be expected to occur in the course of 2015 and in early 2016. The transaction is expected to cover 90 percent of Banque PSA Finance's current activities.

The partnership would enhance commercial capabilities for PSA Peugeot Citroën's brands, enabling them to increase their penetration of the car finance market.

By 2018, this partnership should result in a positive cash impact of up to 1.5 billion euros for Peugeot.