Opel-Magna deal to get finalized this week

Article by Christian A., on August 26, 2010

Even as other European countries continue to have concerns about the deal General Motors Co. has entered for its Opel segment, it is still expected that the contract will be signed this week.

The Canadian-Russian consortium -- Magna International Inc. and its Russian partner, state-controlled lender Sberbank -- are set to purchase a majority stake in Opel. According to Opel union boss Klaus Franz, Opel workers have to agree cost concessions for the sale to proceed.

While he says that they're on the home stretch, there a still a few more points to clear up. With regards to the future of Opel's British sister brand, Vauxhall, Franz said that good progress has been made. Previously, the negotiating parties have said they aim to close the deal by the end of November.

Labor has said that the 50,000 Opel staff -- half of them in Germany -- could contribute annual savings of 265 million euros ($390 million) in return for a 10% stake in Opel.

European countries that have expressed concern about the deal include Britain, Spain and Belgium, says Autonews . The worries stem from expectations that the deal will lead to the loss of about 10,500 jobs.

Topics: opel, magna

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