Following countless rumors, PSA Peugeot Citroën has officially confirmed they are exploring an "industrial and commercial alliance" with China's Dongfeng Motor Corporation.

Following countless rumors, PSA Peugeot Citroën has officially confirmed they are exploring an "industrial and commercial alliance" with China's Dongfeng Motor Corporation.

The company is keeping details a closely guarded secret but their "preferred scenario" would see Dongfeng giving them a cash infusion in exchange for a stake in the beleaguered automaker. The company says the French government "may also participate in these two capital increases on the same terms and conditions as Dongfeng Motor."

If everything pans out, PSA Peugeot Citroën could receive approximately €3 ($4 / £2.4) billion or more from the deal.

The company is still considering additional options but hinted an agreement could be announced on February 19, 2014.

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