Law firms Clifford Chance, Orrick, Commerce & Finance, Bredin Prat and Jun He have counseled on the $4.1 billion (three billion euros) project in French car maker PSA Peugeot Citroen Group by China’s DongFeng Motor Group Co and the French government.

The deal includes a $2.2 billion (1.6 billion euros) investment into PSA Peugeot, Europe’s second-biggest car maker, with PSA’s long-term China JV partner Dongfeng and the French state each contributing $1.1 billion (800 million euros). After closing, Dongfeng, the French Republic and the Peugeot family will each hold 14 percent equity interest in the PSA at completion.

This transaction will be made in the context of a three billion euro capital increase by PSA comprising a 1.05 billion euros reserved capital increase and a 1.95 billion euros rights offering. Existing shareholders will also receive free warrants entitling them to subscribe to new shares in the company.

Clifford Chance advised Dongfeng, the China’s second largest automaker on this deal. The firm’s China corporate partners Tim Wang and Kelly Gregory and France corporate partner Thierry Schoen led the team with Paris Antitrust partner Emmanuel Durand.

Chinese law firm Commerce & Finance Law Offices also advised Dongfeng. Bredin Prat and Chinese law firm Jun He advised Peugeot.

Orrick represented FFP, the current main shareholder of the PSA, and its controlling company, Etablissements Peugeot Frères (EPF), the holding company of the Peugeot family. The Orrick team included M&A and private equity partners Jean-Pierre Martel and Etienne Boursican.

Liu Zhen is senior China journalist at ALB. Follow us on Twitter: @ALB_Magazine.