Economy, Auto

PSA to Take 50% Stake in SAIPA Kashan

PSA to Take 50% Stake in SAIPA KashanPSA to Take 50% Stake in SAIPA Kashan

SAIPA Kashan, a subsidiary of Iran's second largest carmaker SAIPA, will sell 50% of its shares to Groupe PSA's Citroen brand, according to the CEO of the company.

The deal, which would see an equal share for the French automaker, would be one of the first companies to be split equally between local and foreign partners, signaling a new stage in the country's auto development.

Mehdi Jamali, CEO of the sub-group, said the deal will give the French group equal shares in the upgraded production site, according to the local automotive magazine Persian Khodro.

After five months of rumors about the presence of Citroen in Iranian market, including talks of a joint venture, Jamali confirmed that half of SAIPA Kashan shares will be transferred to the Groupe PSA.

This deal comes despite the previous news that Renault was the rumored future partner of the site.

The collaboration contract between the Iranian and French companies is to be signed by June 20 (the end of the third Iranian month). The site is also likely to produce several new vehicles using the Citroen brand in Iran, which will likely shake up the largest segment of the automotive market, being the small sedan and medium-sized hatchback market.