General Motors to sell control of Opel
GENERAL Motors agreed to sell a 55 per cent stake in Opel to a group led by Canada's Magna after months of fraught negotiations that had weighed on the European unit and its 50,000 workers.
The decision, after a two-day meeting of GM's board, was welcomed by German Chancellor Angela Merkel, who had lobbied for the Russian-backed Magna bid and could receive a boost from GM's choice in the run-up to an election on September 27.
Analysts said GM had no clear alternative to the Magna deal because of the costs of raising billions of dollars to keep the brand and fund its restructuring.
The deal also represents a victory for Russia, whose government had pushed aggressively to secure itself a foothold in the rapidly consolidating global car market.
Talks on Opel, control of which GM is giving up as part of a US Government-orchestrated restructuring, had dragged on for months, fuelling anger among the car maker's staff, half of whom are in Germany.
Under the Magna deal, Detroit-based GM will retain a 35 per cent stake in Opel, with Magna and its Russian partner, state-owned bank Sberbank, taking 27.5 per cent apiece, and workers the remaining 10 per cent.
"I am very happy about this decision. The Government's patience and purpose has paid off," said Ms Merkel, describing the deal as a "new beginning" for Opel.
GM opted for the bid by Magna and its Russian partners, Sberbank and GAZ, over a rival offer from Belgium-listed investor RHJ International.
Source: General Motors to sell control of Opel | The Courier-Mail
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