According to Russian business daily Kommersant (6 November 2012), Russian Railways has signed an agreement withPSA Peugeot Citroen for the acquisition of 75 per cent of the French car manufacturer’s logistics business Gefco for EUR 800 million, with the deal to be closed before the end of 2012. Russian Railways had been in exclusive talks with Peugeot Citroen over the acquisition since September.
Gefco already works with the Russian Railways subsidiary Russian Railways Logistics, accounting for half its incomes on the Russian market. At present Gefco accounts for 10 per cent of the Russian market, which generated just under GBP 100 million in 2011 for the French firm, compared to approximately GBP 250 million for the market leader DHL.
While Gefco hopes that the deal will boost its stake on the Russian market and also in Central and Eastern Europe, Russian Railways will by contrast gain access to the European market and implement plans to develop an overland freight business between Asia and Europe.