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March 6, 2017

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Home » Business » Auto

PSA gets board nod to buy Opel from GM

Source: Agencies | March 6, 2017, Monday | Print Edition

FRANCE’S PSA Group is set to announce a deal to buy Opel from General Motors today after striking an agreement with the US carmaker and winning the blessing of its board for the acquisition.

The maker of Peugeot, Citroen and DS cars said on Saturday that it would hold an early press conference today with GM, at which the transaction is expected to be presented.

By acquiring Opel, the French group will leapfrog rival Renault to become Europe’s second-ranked carmaker after Volkswagen by market share. Between them, PSA and GM Europe recorded 71.6 billion euros (US$76 billion) in revenue and 4.3 million vehicle deliveries last year.

The tie-up was approved on Friday by the PSA supervisory board, on which the French government, Peugeot family and China’s Dongfeng are represented as shareholders, one source with knowledge of the matter said.

Spokespeople for PSA and Opel declined further comment.

The two carmakers, which already share some production in an existing European alliance, confirmed last month they were negotiating an outright acquisition of Opel and its British Vauxhall brand by Paris-based PSA, sparking widespread concern over possible job cuts.

In their jointly issued invitation to a Paris press conference today, PSA and GM gave no indication of its subject. Separate briefings for the German press and Opel unions are expected to be held the same day.

GM’s European arm recently posted a 16th consecutive year of losses.

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