Friday, September 11, 2009
Magna is buying Opel and Vauxhall
General Motors (GM) has chosen the Canadian car parts manufacturer Magna to buy Opel and sister firm Vauxhall, Germany says.
Chancellor Angela Merkel said that GM have attached conditions to the sale.
Earlier, there had been rumours that GM could be planning to try to keep control of its European arm.
Magna was the German government's preferred bidder. The decision must be approved by the Opel Trust, which is due to hold a press conference shortly.
BBC business correspondent Martin Shankleman said this was the option that the GM board had indicated it did not want.
The UK unions were also against it as they feared the UK could be at the forefront of any job losses, he said.
Magna has pledged to keep all German plants open.
Chancellor Merkel said that "patience" during discussions had led to a decision being reached.
The German-led Opel Trust has controlled the European operations since GM sought bankruptcy protection in the US.
It contains representatives from GM, the German federal government and the German states that contain Opel plants.
The rival offer had come from the Belgian investment group RHJ.
DATED: 11.09.09
FEED: AW
