Dongfeng drives bargain with Peugeot Citroen

French automaker PSA Peugeot Citroen received agreement at its board meeting on Sunday night in Paris that the struggling company will "in principle" accept capital investment from the French government and Chinese partner Dongfeng Motor Corp.

The two investors will put a combined 3 billion euros ($4.11 billion) equally into PSA under terms yet to be defined, AFP cited unnamed sources close to the deal as saying on Monday.

French newspaper Journal du Dimanche also reported that the investment will give French government and Dongfeng Motor a 15 percent stake in PSA, making them major stakeholders.