Employees assemble cars at a production line of Dongfeng Peugeot Citroen Automobile factory in Wuhan, Hubei province, Feb 13, 2014. [Photo / Agencies]?

France's Industry Minister confirmed on Tuesday the French state would inject 800 million euros ($1.10 billion) in PSA Peugeot Citroen leaving it with a 14 percent stake in the carmaker as part of a deal with China's Dongfeng.

Peugeot and Dongfeng have agreed a 3 billion euro capital tie-up that buys Peugeot more time to turn its business around, brings in new management and ends two centuries of family control, two sources told Reuters before an official announcement set for Wednesday.