Official: GM finalizes an agreement to sell Saab to Koenigsegg
By Andrew C., 26 Aug, 2010. 0 Comments
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Despite uncertainty swirling around the deal, General Motors has finalized an agreement to sell 100% of Saab to Koenigsegg Automotive. Last June, a preliminary deal was struck however; the level of support from Koenigsegg's backers was questioned. Today, those questions remain unanswered. GM Europe bared a vague statement about the deal apart from calling it a stock purchase agreement.
Negotiations are ongoing between Koenigsegg and the Swedish government on possible guarantee for a loan to Saab from the European Investment Fund, a pre-condition for the deal. Carl-Peter Forster, head of GM Europe, remained optimistic, saying that the contract is an "important step in the journey to a potential deal." The closure of the deal is said to be contingent on the funding commitment from the European Investment Bank, guaranteed by the Swedish government. As to when the deal will close, there have been contrasting expectations. Koenigsegg said that expects to close the deal within about a month, while GM expects it by the end of the year.
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