Enthusiasm on the Stock Exchange about a possible alliance PSA-GM
February 22, 2012 – 11:10 pmThe prospect of a possible alliance between the French PSA Peugeot Citroen and General Motors Wednesday raised the enthusiasm on the stock market but also concern about the employment front, factories Europé ; Ennes both manufacturers suffering from overcapacity.
PSA announced Tuesday evening study a proposed alliance, without elaborating on the identity of its potential partner. But sources told Reuters that it was the American General Motors, confirming press reports.
These sources suggest a partnership between the two groups and not a merger, but nevertheless indicated that cross-ownership "symbolic" between the two groups would be possible.
The market response was unequivocal Wednesday morning, the title PSA signing by far the largest increase in the CAC 40 with a jump of more than 10%. At 10:22, the action was taking 14% to 16.44 euros.
"An alliance may allow these two groups of strong synergies and economies of scale, even if that investment and research and development," says broker CM-CIC Securities in a research note.
For intermediate, "the creation of an alliance is highly anticipated by the market and should be welcomed. GM-PSA could be the new Fiat-Chrysler ", predicts the brokerage firm
. According to some observers, the main challenge for the two companies would solve their problem of overcapacity in Europe at a time when the presidential campaign is fueling concerns of industrial employment
.. ……. "JOBS, JOBS, JOBS"
addition to synergies on purchases, marketing or future investments, the purpose of an alliance in Europe could cooperate to cut capacity in Europe and thus possibly close plants
. "There are unfortunately too production capacity in Europe, "said one banker, who for the purpose of an alliance could be for both groups to coordinate intelligently the closure of production units.
"All European deals in the sector make sense to deal with overcapacity," said another banker based in Paris.
This issue of industrial overcapacity concerns and the public to the French government has already indicated through its Minister of Labour that it would be vigilant regarding employment if an alliance was tied.
"Jobs, jobs, jobs … Allow me to be demanding on this point, "said Xavier Bertrand on Europe 1, holding that a rapprochement between groups would allow PSA to change size
.. ……. "If there is agreement, it already allows to have a size in a global market, because PSA is primarily a European champion, national champion", he said
. PSA and Opel, GM's European subsidiary, must each carry out major restructuring to try to become beneficiaries in the context of difficult market automotive, industrial overcapacity and very stiff price competition
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