The new fleet of GEFCO transporters at GEFCO, Corby.

JSC Russian Railways (RZD), is in talks to buy 75% of Gefco, the logistics arm of cash-strapped car maker PSA Peugeot Citroën for €800m (£640m).

PSA Peugeot Citroën said the proposed deal should speed Gefco's growth by creating a business with enhanced reach in logistics services linking Europe and Asia.

The existing management team, led by its president Luc Nadal, will not change, it added.

Vitaly Belskiy, from consultancy Frost & Sullivan, said: "The deal is a clear 'win-win' for both Russian Railways as well as PSA, however rather a short term win for PSA, while more of a long term win for Russian Railways.

"This should secure the company’s long-term position in the logistics market."

The transaction follows on from Gefco's long-term logistics contract with PSA Peugeot Citroën's Automotive Division and a similar contract with General Motors Europe, announced in July 2012.

Gefco employs 10,300 people and reported improved sales of €3.8bn last year.

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