EU concerns over sale of Opel to Magna to be discussed by GM board

Article by Christian A., on August 27, 2010

The board of General Motors Co. is meeting to discuss an issue raised by EU competition authorities over doubts about the fairness of the bidding process for Opel.

In a radio interview, Opel Trust Chairman Fred Irwin said that the GM board is seeking a "sensible solution" with regards to the concerns mentioned on the letter that had been sent by EU Competition Commissioner Neelie Kroes. 

Irwin said that a decision must be arrived at quickly since Opel only had sufficient liquidity to continue operating until mid-January.

He said that the Opel Trust isn't keen on reopening the bidding process due to the complexity of the issue. He said that he expects that the GM board of directors will take the same view.

Kroes wrote to Berlin last week saying that EU internal market and competition rules were violated as the German government made an offer of 4.5 billion euros (6.7 billion dollars) in state aid to support Opel's restructuring only to Magna International Inc. and its partner Sberbank.

The European Commission, however, clarified that it had no plan to block Magna's acquisition of Opel but rather that it intends to ensure that money made available is under conditions acceptable under state aid, internal-market rules, according to commission spokesman Jonathan Todd in a media briefing in Brussels earlier last week.

Topics: opel, magna, gm

If you liked the article, share on:

Comments

Recommended

Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Fireball Performance Cars has been known to make the fastest sixth generation LT1 Camaros in the world. Once again it has managed to walk the talk as it hit a...
by - February 22, 2017
The North American unit of German premium carmaker BMW is recalling around 19,000 units of its BMW i3 electric vehicle because of the risk of fuel leak. You may ask,...
by - February 22, 2017
A publication by the U.S. Patent and Trademark Office revealed that Honda is still looking into the Project 2&4 Concept. Officially unveiled during the 2015 Frankfurt Motor Show, the Project...
by - February 22, 2017
Barely a month before its official debut, Hyundai gave everyone a taste of what’s to come with the 2017 Hyundai i30 Wagon. Despite what little was shown, it did not...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries