Peugeot is now Chinese!

There is more and more evidence coming in to show that China is slowly but surely buying out the entire world! We know that it owns more than half of USA and in Europe too it has made very deep inroads. The latest to fall is in France, the world famous Peugeot.  

This company which traces its history to around 200 years has been run by eight generations. From making pepper mills to bicycles and whale bone corsets, last week the Peugeot family, one of the richest in France, sold their stake to Chinese company. As part of a 3 billion euro, or $4.1 billion, plan to raise new capital, announced Wednesday, the family will reduce its holding to 14 percent from just over 25 percent. That opens the way for Dongfeng Motor, a big Chinese car company, and the French government to each buy 14 percent stakes of their own.

The company had taken a big knock on its chin after the slowdown in Europe, with falling sales and increasing debts. This sell off will hopefully help retire costly debt and fund crucial R&D. But more importantly, what we are seeing is this growing power of China. We are today not even surprised to see this buying power of China and therein lay the real worry.