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EU Contests Peugeot’s Government Loan After Unnamed Competitor Files a Complaint

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The €18.5 billion (US$24.4) refinancing deal struck between the French government and the ailing PSA Peugeot-Citroen group, which includes a €7 billion (US$9.3 billion) state guarantee, is causing headaches to the automaker for the second time in as many months.

In November, talks about advancing the alliance with General Motors’ European operations into a full-scale merger were put on ice because the conditions under which the funds are to be granted rule out any job cuts from the French automaker.

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