Railways Corporation of Russia intends to purchase share in Gefco Holding Company

In a significant move, PSA Peugeot Citroën has announced exclusive negotiations with Russian Railways (RZD) and the Russian company Groupe Brenco, to sell a majority stake in its logistics provider, Gefco. The sale, being announced as Automotive Logistics goes to press, aims to form a "strategic partnership" with Russian Railways and expand Gefco's growth and influence beyond Russia.

According to the negotiations, PSA plans to sell a 75% interest in Gefco for €800m ($1.03 billion). The deal is intended to facilitate Gefco's growth and development in multiple regions, including Asia and Eastern and Central Europe.

Despite the sale, Gefco's management will not change, with Luc Nadal continuing to serve as president. The transaction does not involve changes in Gefco's headquarters location, and the company will remain headquartered in France.

As part of the deal, Gefco will pay PSA a special dividend of €100m before the sale. The buyer, Groupe Brenco, will enter into a consultation with Gefco's works council to discuss the offer.

The agreement will be subject to antitrust authorities, and the deal's completion is contingent upon approval from these authorities. This means that the finalisation of the sale is dependent on the approval of the relevant regulatory bodies.

The sale of a majority stake in Gefco marks an important step for PSA Peugeot Citroën, as they seek to expand their logistics operations beyond their traditional markets. The deal is expected to accelerate development for Gefco, not only in Russia but also in the mentioned regions.