PARIS (Reuters) - France is prepared to participate in the capital increase of French carmaker PSA Peugeot Citroen (>> PEUGEOT), French Finance Minister Pierre Moscovici and Industry Minister Arnaud Montebourg said on Monday.

In a joint statement, they confirmed "advanced negotiations" between Peugeot and China's Dongfeng Motor (>> Dongfeng Motor Group Co. Ltd) and said France was ready to participate in the capital increase "at the same level and in the same conditions."

On Monday, PSA confirmed that it was pursuing negotiations with Dongfeng about taking a stake as part of a possible capital increase of around 3 billion euros (2.47 billion pounds).

(Reporting By Alexandria Sage; Editing by David Evans)

Stocks treated in this article : PEUGEOT, Dongfeng Motor Group Co. Ltd