French minister confirms state will inject $1.1 bln in Peugeot

PARIS Tue Feb 18, 2014 1:36pm EST

PARIS Feb 18 (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 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.