"We've long been critical of the family's involvement in the business,"London-based ISI Group analyst Erich Hauser said after the Peugeot announcement. "As such seeing the family lose influence over the board as a step in the right direction."
From hereon, Hauser added, "the big question is whether three equally large shareholders will find it easier to control Peugeot than one family did."
Gallois, France's investment commissioner who previously headed the SNCF state railway and defence group EADS, prevailed over former Nexans boss Gerard Hauser, the Peugeot clan's initial choice, according to sources familiar with the discussions.
As Le Figarofirst reported last week, however, the family agreed to back Gallois overHauser, a former board member at Peugeot-controlled Faurecia, after meetings with government officials.
(Read more: Peugeot hit by writedown, confirms talks on Dongfeng)
Gallois hasserved on the Peugeot board since late 2012, when his appointment as a nominal independent was imposed on the company by President Francois Hollande's Socialist government in return for 7 billion euros in state loan guarantees.
His nomination will be submitted for formal approval by the new board, and by the Peugeot shareholder meeting, which is being brought forward to April 25 from April 30.
The agreement underpinning Peugeot's capital increase and tie-up with Dongfeng is due to be finalised on April 26, during a visit to Paris by Chinese President Xi Jinping next week.
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