Russian Railways May Buy GEFCO for $1.2 Billion, Kommersant Says

OAO Russian Railways is studying the acquisition of France’s GEFCO, a logistics operator controlled by PSA Peugeot Citroen, Kommersant reported, citing unidentified people familiar with the matter.

The Russian state company is ready to pay as much as 1 billion euros ($1.25 billion) for 75 percent of GEFCO which Peugeot Citroen is selling as a “non-core asset,” the newspaper said. The plan will be discussed at Russian Railways board of directors’ meeting in early September, according to Kommersant.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net