French car maker PSA Peugeot Citroën is due to sign an agreement creating a 50-50 joint venture with auto maker Iran Khodro to transfer technology to build cars in Iran, according to a person familiar with the matter, one of a host of deals expected after broad economic sanctions were lifted in return for limits on Tehran’s nuclear program.
The news came as Iranian President Hassan Rouhani visited Italy on Monday, the first stop in a European trip that will also take him to France aimed at re-establishing political and business relations.
The deal has opened the door to Western countries who are seeking to re-establish ties to sell everything from consumer goods to aircraft.
Italy and Iran are set to sign deals worth a total of around €17 billion euros during Mr. Rouhani’s stay in Italy, a person familiar with the situation said.
The business deals will be mainly concentrated in the energy and steel sectors, the person said.
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