The Opel sale continues: RHJ International joins the club
By Andrew C., 27 Aug, 2010. 0 Comments
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Another entity has joined the fiery negotiations over which the company will get to own GM's Vauxhall/Opel. Belgian private equity firm RHJ International claimed it was now in advanced talks to purchase the division. Although it was known since last month that RHJ submitted a bid, it wasn't taken seriously due to its seemingly weak financial position. An RHJ spokesman says, "We felt we've reached advanced stages of negotiations, and we feel it is now appropriate to confirm these talks."
Aside from RHJ, contenders include China's Beijing Automotive Industry Corp. (BAIC) and Magna, which the German government has openly declared to be the favorite. The deal has been reported to be decided this week. RHJ's bid is centered on saving jobs and keeping manufacturing in Europe, while BAIC's bid involves closing a European factory and moving some manufacturing to China. Both RHJ and BAIC have said they would require 3.8 billion euros in government guarantees if they buy Vauxhall/Opel, which is less than the 4.5 billion Euros Magna has said it needs. [via autocar]
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