SHANGHAI (Reuters) - China’s Chongqing Changan Automobile (000625.SZ) has agreed to sell its 1.63 billion yuan ($234.22 million) stake in a joint venture with Peugeot SA (PEUP.PA) to a subsidiary of Baoneng, the company said in a statement on Tuesday.
The eight-year-old joint venture, Shenzhen-based CAPSA, builds cars under PSA’s premium DS brand and has struggled with falling sales. Shenzhen Qianhai Ruizhi Investment, the Baoneng subsidiary, has paid the first installment for the deal, the statement said.
A spokesman for PSA also confirmed on Tuesday that the French carmaker would sell its stake in CAPSA to the Baoneng subsidiary.
($1 = 6.9594 Chinese yuan termini)
Reporting by Yilei Sun and Brenda Goh, editing by Louise Heavens