Magna is a step closer to buy Opel
By Andrew C., 26 Aug, 2010. 0 Comments
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The big question of whether the deal for Magna International Inc. and Sberbank to acquire General Motors Co.'s Opel unit will be resolved this November. European Union antitrust regulators have been notified of the intention of Magna-Sberbank. According to its daily list of planned mergers under review, the European Commission, also known as the EU competition watchdog, has until November 27 to decide whether to approve the takeover.
On November 3, GM's board of directors will have their regular meeting and will decide whether to proceed with the deal to sell Opel to Canadian supplier Magna and Russian state-owned lender Sberbank.
The sale had been anticipated to close earlier but was delayed after the commission asked GM to confirm its decision to sell a 55% stake in Opel to Magna and Sberbank, knowing that 4.5 billion euros ($6.75 billion) in state aid promised by Germany would go to any buyer of Opel and not just Berlin 's favored bidder, Magna. It's possible that GM will withdraw its notification to EU regulators if it changes its mind. It's common practice for companies to brief the commission after concluding a deal, announcing a public bid, or to show intent to carry out a takeover. [via autonews]
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