Magna agrees a deal with General Motors
By Andrew C., 27 Aug, 2010. 0 Comments
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The company that will be awarded the opportunity to purchase Opel/Vauxhall will be decided next week during a scheduled GM board meeting.
Magna co-CEO Siegfried Wolf said that Magna has agreed to a deal with GM to buy a 55% stake in Opel/Vauxhall with partner Sberbank. Rival RHJ International has also come to an agreement with GM.
The German government will now have to decide between Magna and RHJ since it will provide the new owner with a substantial loan. A Reuters report had said that Magna had at the last minute improved its offer. It's a tough call since GM chief negotiator John Smith has expressed preference for RHJ due to its easier implementation while the German government and Opel unions have signified that they favor Magna's offer. [via autocar]
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